Chambers: You wont see as many acquisitions as we once did at the height of Internet activity. Then, it was all about speedhow fast could you enter a market. Now, its much more about integration and staying power and a slower growth level. But we will absolutely be aggressive in the market about moving into new areas. When we move in, we often use acquisitions as the first step. eWEEK: Many of your competitors say your profit margins are too high. They think youre vulnerable. What is your response?If the market is moving to an end-to-end architecture, its pretty hard to compete with us on that. None of our peers have done that. If you believe its going to be a network of networks and you need to compete in the enterprise, the service provider and the home, then that puts a lot of people [competitors] in tough situations. If you believe its about the flexibility of your hardware for the future, when you will need to integrate voice, data and video and add security, its tough to come at us from that angle. All that leaves is price.
Chambers: When a company acquires technology, its for productivity. Very few of our large customers view IT as an expense. At our recent CEO Forum, executives said that IT enables the implementation of their strategy.