Cisco also reported a 12% rise in deferred revenue, which reached $17 billion, while Cisco's total-product deferred revenue grew a healthy 19%, driven by 48% surge in the subscription businesses. Deferred revenue of that size means Cisco will be able to realize those revenues in the quarters ahead. Likewise, Cisco's earnings beat was driven by higher profit margins. The bottom line saw a boost in total company non-GAAP gross margin, which rose 30 basis points to 65.2%, thanks to -- as I highlighted a moment ago -- a revenue-mix shift toward services.