Are Cisco Products Too Expensive?
If you watch what we've done, we listen to criticisms. We're coming down Moore's Law faster than we ever have, doubling our price performance every 18 months. We came down very fast in switching about a year and a half ago. In terms of our ability to move pricing down, we absolutely will. Our price performance will increase dramatically as we move forward, but what we're seeing for us and for our partners is if you're selling a standalone product vs. a standalone competitor, you should still win, but the pricing margins on that are going to be smaller. If you're selling on architecture, your win rate goes up dramatically. Your margins go up dramatically.
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