Ericsson and Cisco Announce Strategic Partnership Seeking $1B in Revenue by 2018
Cisco and Ericsson have announced a partnership that allow that two companies to work strategically on their whole lineup of offerings.
Ericsson and Cisco are both large vendors in the telecommunications and networking industry. Both businesses will ensure that telecom, enterprise networking and carrier infrastructure will be standardized so that both brands can interconnect and work seamlessly.
The deal goes on to be described to include routing, data centers, networking, cloud, mobile, and global service capabilities.
Ericsson CEO Hans Vestberg was quoted as saying: “I am excited to work with Cisco on continuing to shape the Networked Society. Foremost, we share the same vision of the network’s strategic role at the center of every company’s and every industry’s digital transformation.
The Ericsson CEO continued by adding: “Initially the partnership will focus on service providers, then on opportunities for the enterprise segment and accelerating the scale and adoption of IoT services across industries. For Ericsson, this partnership also fortifies the IP strategy we have developed over the past several years, and it is a key move forward in our own transformation.”
One of the big questions is how this strategic partnership will playout for the 75,000+ combined employees of companies. It should be noted that this deal hasn’t been described as a full blown merger.
In fact, the strategic partnership is said to create over $1B extra in revenues for both of the companies by 2018. If this is truly the case, then this is wonderful news for both Ericsson and Cisco.
Chuck Robbins, the CEO of Cisco was quoted as saying: “With the pace the market is moving, the successful companies will be those who build the right strategic partnerships to accelerate innovation, growth, and customer value. Today’s announcement brings together two visionary industry leaders, with complementary cultures and track records of innovation.”
Robbins goes on to say, “We have worked with Ericsson during the last year on developing a strategy for future industry leadership, and can start executing together today. Our partnership will drive growth for both companies, unique value for our customers, and incredible innovation for the industry.”
