Regarding 2009 spending...
"In 2009, this kind of talk is just silly."
In 2009, governments, especially California's (hence the product name?) will be looking to consolidate data centers, and CISCO will very likely wish to compete for large, lucrative contracts. I'm sure other big projects that promise savings will get legislative support, as well.
Somehow, governments keep going ang growing despite the woes of taxpayers... CISCO knows this.