have pulled out. 10-15 years ago, it was much bigger than that. ericsson, etc. we are the size of market cap and growth and people were read about us with juniper and others and yet will pulled away from them as well. it isn't that cisco i am talking about is how fast his industry is changing. out of the big six ip players three of us will not be relevant to our customers. you can say that as the silicon valley stuff where you move fast. if you look in this role, only 1/3 of you will be relevant in 20 years. when you look at uber and what they did to the taxi industry and amazon with the challenges of walmart. you will see those types of transformation coming everywhere in the world. the nice thing about cisco, if we lead the transformation, we will be in the center of it. connecting what would be 500 billion devices. >> people get excited and they feel threatened about it. by some equipment. -- buy some equipment. some businesses today, our technology businesses. the decisions about what the business is is largely the coming technology decisions. we have a lot of ceo's, tell us about that. technology and business decisions are merging into one. how do you see it? >> all of high-tech industry has for decades, i.t. should enable your business. in some ways, we did and in some ways do not achieve many of the business objectives. in the last 18 months, you have seen the attitude change. if you were to talk to the new ceo of walmart and describe some stuff as a technology company first and then retail. you are beginning to see american express suddenly thinking entirely different in terms of the image and how technology will get a different interface and allow to move. but it is not just in this country. you are seeing countries around the world change at tremendous speed. angela merkel talks about her country being a digital country. as with the key leaders in germany this past week and in france and that -- the prime minister of france and looking at how to digitize the country to make a competitive for the future. israel is probably the top high-tech country in the world with a digital first, gdp growth, job creation, inclusion of minorities, health-care, education, movement of other cities. what it says is tied this together and these number of devices connected to the internet to 500 billion, you will be in a good spot. >> how does a business person make decisions on when aims are moving at that pace and in that way? >> traditionally, you turn to the cio and say educate me on this and make the decisions. that is not an option anymore. if i talk to cio's around the world, most believe they have to understand that technology is self. a key advisers a business leader to understand the technology opposed to the cio. if we and he or her does not make the transition, -- this is one where the cio has to change in the business leaders but the cio. >> the ceo will be irrelevant in five years? is that important? there you go. >> if the ceo doesn't change he or she will take the company down with him. >> the people hiring in this room today, should they be left hiring for technological proficiency? >> first our education group does not do a good job of repairing the skills we need. >> go on. >> you have to think about how the newly young people in? if you cannot communicate with the social capabilities and do not understand collaboration you will not get the talent you need. what do i tried to do? i try to get people who understand the business we are after in understand the implications for it. >> let's talk about the sales culture. traditionally, cisco seems to be changing quite a bit. can you give me an example or two of how you reach your customers? how technology quest -- technology? >> one of the hardest transitions we have to transform our organization, service and sales. we are a tough sales team. we can sell routers well. i get excited. most of you go [yawn] we have 18 product families where we are number one. producing solutions and outcomes. easy to say, hard to do. how to sit across the table from a leader of a large company and say your gdp can grow 1%-3%? >> do they say they do not believe it? >> i will bet you money on it. >> in no productivity from -- you can say productivity grew quite rapidly because i see and the missing productivity quotient. all of the spending from 1996-2014, we have not seen the productivity close to 1%-3%, why should we believe it now? that it will really change? >> you have to catch the market transition is true. during the 1990's, you moved in connectivity and the internet came, directly and indirectly and went from 1000 devices connected to 6 billion. we did very good on collaboration at the top. we changed the supply chain. what you are back to see, you'll connect the devices and think about right hundred billion devices squared where this will go. the challenge is how do you get the right information at the right point in time to the right device to the right person to make the right decision? that is about architecture and transform your business prospects. you will have to change, education, the same thing. how countries are run is about to change. when you see the industry leaders and wanting as a ceo and government leader, you have to have the instincts of was something fundamentally changes. probably unfair because she is an engineer and talk in mexico and how does he achieve socially quality and the role's next-generation of the internet of everything, how does it transform the business? you do the same thing in germany and france and you ok -- and the u.k. and they get it, these are smart people. can we fill a void where we can get people excited? >> there's been a lot of money spent and people in this room have spent billions of dollars and maybe that will be the case they can get those sorts of results. a good way to sell stuff, people are looking at specific examples of why that should be the case. >> let's go to a city transformation, barcelona. it is the top innovation city in europe. basically, the mayor and vice mayor, interfacing the city. they outlined the goal of transforming their city. they are the only balanced budget in southern europe. they operate with a surplus and have $3 billion in savings over 10 years and networking. that would change how public transfer patient -- transportation works and while smart buildings and will do paid parking. >> how long does it take? >> another three years. and in terms of implementation. [indiscernible] let's go from there to hamburg. 25 need out a year to do that. >> -- $25 billion a year. -- >> not a bad. >> everything will get connected. you only pick up your garbage when it needs to be picked up. you cannot do these in silos. you combine all of the functions which is where people make mistakes and they try to get excited about one area. the way you get people comfortable is say you have references. you go to hamburg in germany. it has 83 different train stations coming into it and 1200 ships a year and tens of thousands of trucks adams completely traffic jams. they took technology and change the system on its head and has a 75% improvement in productivity and they will double their capacity in the next 5-10 years without increase in revenue at all in terms of implementation. in their transportation company and you think, that's a railroad company. you talk to the ceo and he says he is an internet of everything company. they are going to move into bicycles and cars and transportation and different customer experience. you see a country like germany and the industrial revolution where the government leaders say i will transform myself. you see in a france, the president of france is in a tough situation. he is thinking about what he can change. if he watches what he is doing and he has an unbelievably good prime minister with him and it was a pleasant surprise. he understands have to transform his company. and willing to say how do we do these with companies and how do we partner with the chamber of commerce? 700,000 members and how do they put technology in each of the companies and how to the companies and how to the company's guaranty a million jobs and growth? at cisco this concept -- >> back to sales. you are ahead of state level at this point. tell us what this is. mrs. merkel, you have a few things on your plate and i will like to sell you a connected port. and then what happens? where do i cut the check? what is that sell like? >> let's use israel because we made the sale. you identify the country you want. second thing they want is jobs. they have to include 2 million arabs in israel and the working force which they do not do at the present time. you have to include coming back into the workforce. and economic and defense and connectivity and education and health care. you line up with all three critical partners. >> there -- you are bringing political unity to israel, is that what you are saying? >> know, the key leaders understand how to work on a common goal. if you speak to prime minister netanyahu, he will say cisco is my partner. you talk to -- cisco is my partner. you talk to a third political party, head of finance and they say cisco is our partner. you make it known. you are talk to republicans and that support democrats sometimes. it does not matter which party it is. people grasp what can occur. once you get the references, it gets exciting. you are able to say this was general motors does or what was done in israel or the -- or israel. and then you have trusted we have a lot of witnesses. -- and then you have trust. -- web a lot of weaknesses. >> let's talk about the weaknesses. everything sounds exciting. the world is changing probably for the better. cisco -- and the s&p at the large trades at 17. the market has spoken. it is given a referendum on the vision for cisco's sake of what you want to do with the country -- company. why is there so little multiple happiness for the company? >> i will address it that way. [laughter] let's go with it. we outperformed the market dramatically this year. we're up about 10% and as dramatically better than the dow. secondly if you watch our earnings they are up threefold over the last decade. our revenue is up to hundred 50%. our ratio has gone from 205. not are we a great company, not do we have the number one market share of almost every private area. we out execute our partners. can we grow? there are a lot of new challenges, concepts like cloud and software design network. we have the same challenges a decade ago. our ability to produce results against the growth in earnings. we are close to where we are. if we grow in the mid-single digits -- >> ibm is about 12. that is you of the channels. all of the new change. the challenge is do we get the markets right and what the markets are were read about, we are good on transition. the question is, can we get revenue growth in this area? a small company of 20 people can come right at us. on the other hand, every time we get a 40% market share and combine these products together and take expenses out and moved. if we do it right, we will have good software. >> everybody has seen the ad and the hype about the cloud. tell us three things that are b.s. about the cloud and three things that are real. >> i will get in trouble. quickly go for it. >> the i.t. is waiting. -- sweating. b.s. on the cloud is it is secure. it is not there yet and it has to be with certain applications on it. how easy it is to get some work load balances. [indiscernible] the positives -- it will be the future. we would use a for 20 5% of consumption of i.t. or 50%. -- 25% of consumption of i.t. or 50%. if you talk to pass customers, we are the number one player in terms of private cloud. yorkie is do you see it coming and can you use this market transition to become the number one player? we entered the market in cloud and combine technology with storage with the network and everybody said cisco is not a good server. we are the number one in the u.s. we want to the state market share. in our industry, do you get the market transitions right? market transitions and then are you able to economically brain-dead to the bottom line? some have huge pressures on your earnings. -- are you able to economically get to the bottom line? and if you have the courage to go after it. we do acquisitions uniquely. out of 18 months, all of to have been in the cloud. >> people have got a lot going on and may not remember much from the conversation but to give one thing they need to know about the cloud. maybe take off your cisco hacked and as a technology advisor to people in the room, one thing about the cloud. >> i think it allows for destruction of business. many people have private clouds and other use public clouds and combine with our partners for a cisco cloud image. understanding were cloud comes together with mobility and social insecurity is going to be a large part of where this industry goes. as a business leader, you should not care about clouds you need to know how technology enables your goals and how it can enable your goals for connectivity and get it back like we did in the 1990's over the next decade. you want to know how it enables a new set of competitors to come at you. they would not be the same and they will be dramatically different in 5-10 years and regardless of industry. it is not an end goal in its self. have people on your team who understand, the implications on it. >> let's move from clouds to bubbles. we had a piece of public weight the wall street journal that said these silicon valley is in a bubble territory. his line was there are more companies losing more money than ever before. valley in the bubble? which segments? >> just watch -- [indiscernible] >> they do not have -- >> that's my point. what you have to watch and john, a wonderful man on my board he would be the first to say and this is not about overconfidence , 75 percent-80% of the major transitions in the technology world today expertise is within 25 mouse -- miles of silicon valley. it is hard to describe how unique it is. people were willing to take the risk, unlimited venture capital. companies are getting funded way too early and the ceo's know it. they say if i can raise 200 million now a gift 10%, i will have it for a long time. there is a real worry. dr. wang trained me well and the smartest man i know. he said if you think you will go to countries like china and sell one coke, that's not the case. cisco is more profitable since day one on one of the most profitable around. so, i personally think a mistake not focusing more on profits. your numbers are right and you can argue the company is going public today has no earnings. in 2001, we remember -- 83%. if you get caught in an economic downturn or in a social media segment of that, you will see some type of breakage to occur. however, if these trends continue, growth covers up the mistakes, the companies will figure out how to make profits out of them. if there is not a major industry disruption were economic downturn, you will probably have a gradual landing for part of those companies. will the majority of my competitors be in existence 10 years from now? no. the majority of the social networking companies be in existence 10 years from now? probably not. if there is not a major disruption, if there is a major disruption -- >> do you see race having any impact on silicon valley? do you see that? >> absolutely do. if you watch what most of my customers view and concerned about, it is the emerging markets. a data point, the emerging markets are in the mid-teens. mexico went for 15% growth to flat and one quarter, year over year and the next year -12%. it was a good forerunner. if rates are raised dramatically , you would choke growth in emerging markets. there's only one engine going well and that is the u.s. 3% growth, not bad. if rates and get raised, it. the world. our central breaks have to be concerned. yes, it really could. >> china, speaking of emergent. not so emerging anymore. describe how you feel about the complicated relationship between the national government of china and the united states, the privilege of cisco, a representative of the tech industry. where does that stand and how do you feel and where is it going? >> both of my parents were doctors and they taught me to deal with the world the way this and not the way you wish it were. the complexities is the most complex it has ever been and mexicans out of the state department and a great undersecretary of traded their. we are not effectively communicating between our countries. when you do not communicate well whether it is us and russia were us and china, then you have a lot of fallout occur in the process. my view is china ought to be a great economic partner with us and we ought to the able to artistic -- articulate the win-win to get there. that is what the chinese would like. >> what is wrong? ? -- >> we are not communicating effectively. i am not just talking five years experience in china, i have been there 30 years. i've seen it on charts. what the future leaders, the majority before they got appointed. [indiscernible] a market i know well. cisco and china, it can go either way. i wish i could tell you i control my own destiny there but i do not. the chinese are pretty smart and usually pretty predictable. if our countries were able to work out issues, there has to the rules of the road that we are going to do versus germany or versus china. we have to agree upon it does. it is an industry issue. china could go either way as the wildcard on it. i like india. if you are bidding on emerging markets, modi has the imagination of his country and business leaders. he has the equivalent of both the house and senate in his terms with his political party. if i were betting, i would bet big-time on india. china? a little tougher. >> you view them as -- how would you rank them on the scale of free and open trade with cisco right now? >> it is 30%. having said that, we achieved one of their top social awards given out in beijing for what we did during the earthquake. 85,000 people died. we change health care and education. the chinese know we have brought transformation and innovation. >> foreign markets often view you as espionage and cisco as related. whether fairly or not. that incredible picture of nsa personnel having basically stolen cisco gear, put their software on it, and put it in the sales. rather incredible photo. >> first of all, none of us know for sure the sac surrounding. it was a picture -- none of us know the facts for sure. if businesses and governments, 30% come out of china if we do not work with trust in our governments do not come together we have a big problem. secondly, you have no idea what a government does. all espionage is done in different ways. the easiest way to get into a network is a systems administrator. they are the ones who have the key. they use the same password on a system that they do on facebook. the vast majority of espionage issues will be done by employees , rogue nationstates, and candidly, organized crime. we are going to try to transition to a security company. today, the people in this room have 70 security companies in their environment. that means you have none. the bad guys while to get around. you take a problem and say how do you solve it? with never given -- would've never given our sources. there are no backdoors that we are aware of. we find any government in any customer's network, we give them up immediately. it doesn't matter if it's china, u.s., or your. >> germany has been vocal about u.s. interests innovating german space. what do you tell merkel? you have a conversation, what do you tell ms. merkel? working on it. >> if you share conversations with any government leader, you do not -- >> generically speaking. >> the first thing you say if you are not part of the transition, you are left behind from the second thing is we can bring it to you better than anybody else. third, watch our track record. there is no facts about what people say. you have to earn their trust and confidence in how do you achieve your goals in this country and how do you partner with a deutsche telekom to bring back to life? let me use an example of the same conversation of france. when i met with him on friday, it is an understatement. he was remarkably effective. we talked and we went through the issues as in i did exactly what i did here. two of the heads of states visited and we knew very well in palestine, we have to take the economy of 0.5% and people give cisco the credit to do it. in jordan, right in front of you , we had worked on the education system and had done that 10 years ago. currently, we are working on health care and how to transform. whether a business our government leader, as a track record of being trusted, this is an issue for merkel to solve with obama. they have to have rules of the road and conduct and resolve. you cannot put your business in between. >> a few last things. hillary clinton. she came to address yourselves meeting. tell us. what happened? what was it like? is she going to get it? >> it was interesting. i have probably interviewed 20 heads of state and her husband probably 4 times. she did not want to know the questions ahead of time. she gave a good opening statement and we got right into it. several came up afterwards and said we have a problem. [laughter] they said, she is really good. [laughter] she -- she would make a great world leader. she really would. >> you are very good. what is the one or two things that she has that you think that make her special in your eyes? >> experience, able to articulate her view incredibly well, she listens well, she understands if you are going to lead a country, you leave it with this is -- leave it with the business. and she comes with the experience that is very strong having watched from the side as the first lady and then senator and head of state and secretary of state. and followed the government leaders and they are candid about how leaders lead. she has progressed. she has a very good face. i hope we get a candidate that can give her a run for the money if she decides to run. i think without a long way to go to ask somebody in a position that would have that type of firepower. >> you are willing to accept treasury secretary for either party? >> no, i am not into politics. i like democrats and republicans. i like the business. i love what i'm doing. i have been on the road for two weeks. trying to change in the world. >> speaking of transition, larry ellison, 70 years old. one awesome company. you are 64. do you have any thoughts? >> just turned 65. i think larry did a great job on transition. they will make it run smoothly. secondly the next time i talk about transition will be -- the next time you hear when we make the transition is self. i have a great number of five-10 people that could be ceo of almost any company around the world. >> you spend a lot of time jotting. is that where you have your best thoughts? >> i think each of us find a different way of ringing. -- of thinking. i am not a fast runner but i love do it. i run uphill first. the first half, i organize my thoughts solve the problems, think through the issue. the second half, i just enjoy it. >> let's go to q&a. we have a great crowd here. please. >> thank you. my name is pamela teegarden. in my company, we look at employee engagement specifically. i will take the conversation a little around, you spoke a lot of productivity. over the last couple of decades, we have known that a lot of the productivity is tied up in engagement. we have not come out of that yet. as his productivity increases, unprecedented levels, that will increase operational well-being. we need personal well-being as well. my question is not how will we adapt, what is the innovative, crazy new idea that will take practices to another level? >> it will be around social media and collaboration coming to life. being very open, microsoft and cisco, probably the two leaders in collaboration. we do well with top-down organization -- collaboration. so i think the future is going to be all-around collaborative capabilities with the video at the heart and ease of use and not a cio behind you a you have to change the process. those are one of the reasons i am bullish on productivity. a very advanced video capability that can cost $20,000 in your home or $2000. i think the ability to bring collaboration to the forefront is very important, being challenged. the two leaders in the industry needed to find ways that we interoperate with our customers in the middle and that is not good. also, the ability to really be there when your employees need you is a key element. i know every employee and cisco -- we will have it in earth to help them during the tough times. that is part of our culture as well. the majority of our employees we hold our teams during the tough times pretty well. to answer your question, around collaboration and how do we understand this new generation and what did they expect with the smartphone and around, it has to be easy to use. >> are your employees too distracted by their phones? >> no, not at all. [laughter] to answer your question, the most important technology device to every college graduate is there smartphone. if you do not understand the interface or that's what you're going to sell to them or when they are in your store buying stuff and contacting through social media, to say what do you think, i have to go the other way. you have to find the device will enable relativity and find a way to interface every device and do it right. >> please. if you can use the microphone. >> you talk about cisco's plan and your travels and what to see and the telecommunications. and secondly, i am of the financial side. i come with the school of thought that you buy stock when it is undervalued. you have spent citizens billion dollars buying back stock that was not undervalued. what motivates you to buy that what the company pursues and the prices that do not seem to be attractive? >> a series of questions in reverse order. this past year, we have a commitment to our shareholders to recommit to values. out of our 50%, a lot of money per year, we are very profitable we will return that in the form of share buyback and dividend. we got back and gave 120% to our shareholders a you all deserve it. we are going to continue to give at a minimum 50% pretax regardless of tax laws. to your point, though by that has been good from the people we bought it and a shareholder. the stock is up a fair amount. to the first question in terms of around the world, the enterprise market is going well. in the u.s. when you look at the last quarter of this year, we will maintain that rate. what i say today should not have an impact on the current quarter. i am not making any updates. thank you. [laughter] but if you watch what is occurring, the technology, again, will get a huge change in terms of productivity and interfacing the customers differently and taking on competitors. when you look at u.s. gdp usually good news and bad news is a good indicator of what is about to happen. if that feels really good. europe germany, and the u.k. grew in double-digit. we look at where it is happening a you can follow that. we did see emerging markets continue to be very challenging and more standard deviation. a lot of pressure on price and a lot of pressure around the world , they do not know how to make money. competing against an amazon or google model or microsoft model for top player and they are competing with a very high overhead structure and what they do for its. i have said, about 12 years ago i wish i'd used a different word, 90% of revenues will be free and the same thing we do with data and they must transform themselves to a different level of content to their customers. many of them are struggling. some are really getting out of the box. comcast. we are modeling to the. -- to be. you are seeing a lot people looking at how you value sustainable to your environment. we watch what comcast is doing at getting content and that is one of the ways and have been successful. if you watch what netflix is doing in terms of content. it is where you're going to get your revenue stream and where do you have sustainable differentiation? >> a quick follow up into the question. in forcing a -- in forcing a need for a buyback and dividend and not the capital overall? >> i think every ceo has to make the right decision for their company. if you are worried about someone second-guessing or get cautious, you cannot lead. >> the activists are winning and are in control of wall street. >> i respectfully disagree. you are seeing a focus that is right, the right thing to do to give 50% return to my shareholders, we should do it. it is the right -- if the right thing to do is to bet on acquisitions, i am going to continue to do it. if i get beat up on acquisitions that does not work in the major criticism of a company called flip, i have 20 copies i paid more than that that have been successful, i take that pressure. you want to be your own activists if it is right for your shareholders and customers, you do it. you always have to listen to constructive criticism. you always have to have the courage to do what is right. if you make the decisions in the short term if people put pressure your company will not have a good outcome. >> a huge commitment to shareholders and perhaps arguably not spending the capital, a digression. other questions? use the microphone. if you feel comfortable stating your name. >> thank you for coming. >> appreciated. back to the security topic. you see what this happened with home depot and target and all of that. what did you say to the leaders of those companies and for more pay standpoint and beyond governments need to trust each other, what are the things you think the u.s. can do from a policy perspective that would engender more trust and even our allies at this point? >> all rights. so, if you watch what is occurring in the environment and i know i would make people uncomfortable here, there are no -- centers and you have to know what happens could happen to you. every company in the u.s. has probably been broken into and people do not announce a for a whole bunch of reasons. the majority it has nothing to do with our government or counterparts. this is why we are going to try to become the number one player in security because it will inhibit cloud and mobility in a way -- what we have to do is be realistic that the majority of security issues are because companies do not follow policy and i will not talk about either of the companies you mentioned. most of the times, when security is breached, somebody did not follow the policy they should have. they left a backdoor open or the password is like leaving the key. this is just going to get worse. organized crime, the sophistication is unbelievably good good. the attacks out of asia were way more than what you probably read about. unbelievably tough sophisticated type of attacks. what i tell a ceo or leader is first, you are exposed. secondly, here's how you can minimize. third, pick the right time for a sales pitch that has to do with the network and the realistic. take the attention on paying attention to policy and direction. that is what our company's have done together. but it is something our country has to address. it is where i believe the country's leaders have to come together. there is no rules. guess what government should -- this is what government should do. as long as people know that, you do not surprise your citizens or companies in terms of direction. >> a question, one or two specific things you would recommend along those lines? >> really educate your people. most of the problems come from people not following procedure. somebody just left the password open or to be cold home. there is good reason for doing that. you need an overall security strategy and you need to put not somebody good at it, is a kiss of death to say you are my chief security officer. it has to start with the ceo and drive it through. it is the thing that will slow our industry and can lead to billions of dollars in damage just like that. >> john? >> take us back to india for a second and your enthusiasm about modi. there's been a lot the ceos who have come back and said this is india's time. they said with congress in charge. what is different this time? >> i bet on india almost 15 years ago. as a vehicle for emerging countries and graduating 600 engineers a year -- 600,000 engineers a year. top 5% of their populace in these schools and high, good talent. india's issues in my opinion have been self-inflicted. if you were to talk to ceo's three years ago, they will say they are not getting as much because they cannot off their problems. they do not have the problem with trade like china or other countries. they control their economy. their parties were sold to size -- and divisive, even though their prime minister is a good man, corruption with his party at the top and and not execute. what is different is you have a leader who is going to execute and like anything else, you do not want to make the expectations so high he cannot deliver. he will make the tough decisions. he has captured the attention of the people and the businesses. and the citizens. here streamlining government controls all of the operations so he does not deal with a divided congress or senate. that is why you see people enthusiastic. they will have a great run. again, i will bet on india in a big way. that is different from almost every emerging markets. you have the reverse in brazil and china. >> would you agree with that john? >> i am not sure modi has had a chance to prove himself. there are so many moments of enthusiasm in india that gets caught in the bureaucratic traffic jam. it was interesting for you to say this early in his tenure endorsing a belief there will be substantive change area >> part of what i do is bet on market transitions and we always want to be right. is it a given he will be successful? no. have all of the weaknesses of democracy. that the youngest world population, a great education system for the very top. if they execute, they what a great run. you can handicap it in terms of two times out of three. >> what was your thought process in the purchase of scientific-atlanta? i've got the cable box would be the center of the day way of everything in the connected home. >> good point. i doubt there will be no better company to make it happen but nothing has evolved on the set top box in the past 10 years. >> whenever you interface and try to be something other than a network, you see where they make their money. my view has not changed. most make their money into video. it will also be the entertainment and that is what some of the companies will talked about, netflix and comcast are going after a europe on high-end sports team. scientific-atlanta decision for us and brought us into the most relevant space for customers and they had a unique expertise the customers did not have. what is occurring right now, set top boxes are monetizing. that is why we bought into it. the ability to move from set top boxes into the cloud with video and the next transition we have to make. it is not easy. as you have seen, the margins have dropped a fair amount. there areas you have to play for the search providers. usually video and the number two is usually mobility and the number three is how do they transform themselves to provide a different level of capability to their individual customers and to enterprise. and how quickly they can develop these new services. you are going to be very strategic and make a good margins. if you do not allow the top priorities and provide boxes you will get killed by the white player -- white label players. and so, that is the play we are making. it has been a good one in terms of relevance. >> just a few minutes left. maybe a couple more questions. who has them? everybody has to get to work. yes? >> i am an investigative reporter. if you would let great more on the organized crime -- elaborate more on organized crime in eastern europe, russia china -- >> no, they are everywhere. organized crime is like the movies why do you rob a bank, that's where the money is. organized crime is beginning to look at if you are going to try to take money from people or companies, how do you do it in the new electronic age? unfortunately, they are getting sophisticated. some of the strong players are out of eastern europe and some from latin america and some from this country. it is something every country has to deal with. unfortunately, their ability to taxes down and so many people think it is software connected to somebody's electronic device. 99.9% are done different ways. this is one that i think is going to be with us for a while. it is one each consumer has to be educated on and what are the implications if you open up a letter that looks like it was sent from your bank but from somebody phishing? there is opportunity for companies to really be successful and the security segment and take a negative and make a positive for us. time will tell if we will be a success story. >> one last question. >> christian from warriors. -- reuters. you guys have been mentioned as being in the mix of looking at strategical alternatives and i am wondering if you like to comment on that. >> i think -- a very good leader and friend. they are a good partner for us. what we did with emc is the storage business and we partnered with them and now ibm to lead and the data centers in terms of direction. what we have done different than our counterparts is combined all of our parts to work together and we really have uniquely gone across each of our habits areas and service areas in terms of direction. emc decided not to do that in opening up to some of the challenges. you do not want to comment on activity with a given company but i will make an exception on this one. we usually get the opportunity and usually asked and are a good acquirer in treat people well, as such are if joe and i were going to do something together, we would've done a year or two our goal in terms of direction. >> a very candid answer. glad we could end on that. great visiting with you. climbing up a hill with a smile on your face. thank you very much. give a warm round of applause to john chambers. [applause] final word. >> thank you very much. a terrific job. you are getting clear then more sleep. if i may, 20 years on top of the technology sector in this country is extraordinary period longevity. when you became ceo of cisco, steve jobs was in exile from a apple. allie baba was a fictional character in a fairytale. it has been pretty remarkable and longevity are thank you for much indeed for being here. [laughter] as i said at the beginning, you can see it again -- please join us for our next breakfast which will be december 8 with the denny's morrison, the ceo of the campbell soup company. it will be a perfect time to talk about soup. thank you very much. ♪ [captions copyright national cable satellite corp. 2015] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> on the next "washington journal," a political roundtable with republican pollster and a democrat pollster, on the public's opinions on politics and policy, as the g.o.p.-controlled congress con convenes this week. and the top economic stories in 2015. as always, we'll take your calls and you can join the conversation at facebook and twitter. "washington journal," live at 7:00 a.m. eastern on c-span. next astronaut charlie duke talks about the apollo moon landings. then nasa photographer bill ingalls presents some of his work, including photos of space launches. after that, a conversation with the c.e.o. of whole foods walter rob. tonight on c-span, two conversations with space travelers. we begin with apollo 16 astronaut, charlie duke, who with u.s. the tenth man to walk on the lunar surface. he was also the voice of nasa's mission control in 1969. mr. duke speaks at an event hosted by the explorers club in new york city. this is about an hour and 15 minutes. >> charlie duke and i did an exploring legends almost two years ago now, so i feel very comfortable with him. of all the moon walkers i've met, he is absolutely the most charming and nicest of guy. you'd never know this guy walked on the moon, ever. last night at dinner, i mean, he's just a normal guy. but make no mistake. this guy has the right stuff. he went up on apollo 16. they spent a lot of time on the surface of the moon driving around in the rover. that was the second to the last mission to the moon. 17 followed that. but charlie was the youngest and tenth man to walk on the moon. and i just have to say, this is going to be a lot of fun, interviewing charlie. so welcome charlie duke! [applause] >> thank you. thanks a lot. thank you. >> all right. before charlie was famous for apollo 16, he was famous for apollo 11. and you won't know his face, but you'll know his voice. when those guys are running long and the fuel was running out charlie was the capcom. he was the guy communicating from nasa control center to buzz. so i guess nobody better to take us through those tense minutes than charlie. talk about 11. and remember, take us back. >> before i do that, first, jim, good to be back with you in the explorers club. it's always a pleasure to be invited to have the opportunity to speak to the members and the public. and so thank you for coming. and i hope you enjoy our 45 minutes, an hour, or whatever we have here together. so i was very privileged to work on apollo 11 and mission control. the team that was on apollo 10 that did the lunar

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