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Product revenue was up 5 percent year-over-year, while services revenue rose 7 percent, Cisco's Calderoni said. Services revenue this quarter grew slower than in past quarters because of slower product sales in the last two quarters, he said.
For the quarter, switching product revenue fell 2 percent from last year to $3.6 billion, NGN (Next-Generation Networking) routing product revenue was steady at $2.1 billion, service provider video revenue up 30 percent to $1.3 billion, collaboration product revenue down 1 percent to $1.0 billion, data center product revenue up 77 percent to $515 million, wireless product revenue down 4 percent to $327 million, other product revenue down 41 percent to $144 million, and services revenue up 7 percent to $2.7 billion.
Cisco's Chambers said any concerns about how a coming shift toward software-defined networking (SDN) might impact Cisco have been overblown.
Cisco currently has 50 beta customers in the Cisco ONE (Open Network Environment) architecture, which includes OpenFlow and OpenStack technologies, and it is one of the leaders in the open source OpenDaylight project.
"We feel very confident in our leadership in the market," he said.
When asked during the question-and-answer period of Wednesday's financial conference call about how Cisco's margins might shift because of software-defined networking, Chambers said SDN is not a software game but instead is an architecture in which hardware, software and ASICs work together. Cisco's SDN strategy also leverages the company's installed base, he said.
Chambers said not to expect a big jump in revenue, but instead a growth in recurring revenue over time.
He also said that, if the market expected SDN to have a major negative impact on Cisco, the company's third-quarter results would not have been nearly as strong as they were.
Robert Lloyd president of Cisco's development and sales, echoed Chambers by saying that SDN will not be a software-only play.
"We continue to see evidence in the marketplace. ... It's great hardware and Cisco software that will drive SDN," Lloyd said.
A big part of the 77-percent growth in data center products stems from sales related to Cisco UCS servers, which Chambers said is on an annual run rate of over $2 billion.
However, in response to an analyst question, Chambers said those sales are growing not because of a demand for the servers themselves but for solutions built around converged infrastructure, the cloud, and together with Cisco Nexus switches.
"It is largely an architecture sale," he said.
Looking forward, Calderoni said Cisco expects fourth fiscal quarter 2014 revenue to grow between 4 percent and 7 percent over the same period of last year. Non-GAAP earnings per share is expect to be 50 cents to 52 cents, with GAAP earning per share between 7 cents and 10 cents lower than that.