Tal Liani: Yes, hi. I have one kind of big-picture question and one more specific. Maybe I’ll start with the specific question. If I look at the 400-gig Ethernet market share, cloud, if I take Arista and White Boxes, it’s like over 90% of the market, Cisco doesn’t have much of a 400-gig market share by the data. But you are talking about growing market share in 800 gig. Can you talk about the dynamics of 400? And then why was it this way in 400 and how it changes in 800 in your expectations? Second is about the big picture. And I need — I want to understand kind of the numbers. Product revenues last year were $38 billion. Product revenues this year is $43 billion. So that’s $5 billion increase. And the decline in backlog is about $5 billion.
Your implied guidance for next year for product revenues is roughly flat plus. So without the support of backlog, how do you get to product revenues? What are the other parts that could go to product revenues and compensate for the fact that backlog is going to be normal by the end of next quarter or next 2 quarters, maybe? Thanks.
Chuck Robbins: Yes, Tal, thank you for that. And so on the 400 gig to 800 gig, I don’t know that I’ve seen exact reports that you’re talking about on the 400 gig. But our teams — the volume of ports that we’re shipping on 400 gig would imply that that’s a — I don’t know, we’ve had a great deal of success and it’s been growing quite significantly. So — but we obviously had — over the last few years, we’ve been rebuilding or actually building our presence in this space. So it wouldn’t surprise me to see us as a low market share player, but we’ve certainly won our fair share. On the 800 gig, I think it’s just a matter of we’re engaged there. We’re installed already. We’ve got trust with these customers. They’ve seen what we can do. And I think that we’re just in the game at the right time as opposed to where we started. And so I think from now on, it just gives us an opportunity to be there from the beginning as opposed to trying to catch up.
Scott Herren: And Tal, to your question on the math you’re trying to do on product revenue, I think some of this goes back to the answer that I gave Tim earlier. One of the things you have to consider is some of the product revenue we delivered this year was actually demand from the prior year, right? Demand from fiscal ’22 that because of the supply constraints, we simply couldn’t get out the door. Had that not been the case, you would have seen higher product revenue in fiscal ’22 and slightly lower product revenue in fiscal ’23. And you would have seen a steady increase then from ’22 to ’23 and ’23 to ’24. So the things that are driving that are the things that we’ve talked about, right? We continue to see good traction and market share gains in our enterprise networking products.
We are invested early in the AI game and see a great opportunity there. We’re getting early success, although it’s — you’re not seeing a lot of it yet in the P&L, but we’re seeing some pretty early success with our revamped security strategy and the great work that team has done. And so — but instead of trying to do it the way you’re doing it, the delivery has been lumpy, the demand has been less lumpy is probably the right way to think about it.
Tal Liani: Got it. Thank you.
Marilyn Mora: All right. Thanks, Tal. Next question.
Operator: Samik Chatterjee with JPMorgan. You may go ahead.
