Ericsson and Cisco announce wide-ranging networking partnership

“Networks of the Future” strengthens deal on internet of things, 5G and cloud

Ericsson and Cisco have signed a massive business and technology deal that both claims would add an extra $1bn in sales for both firms.

The companies said in a statement that both would work together to offer customers routing, data centre, networking, cloud, mobility, management and control, and global services capabilities.

The statement added that the partnership would "be a key driver of growth and value for the next decade, with each company benefiting from incremental revenue in the calendar year 2016 and expected to ramp to $1 billion or more for each by 2018."

The companies have signed a number of agreements covering areas such as joint research and development, a broad reseller agreement, and collaboration in key emerging markets.

Cisco and Ericsson have also agreed to discuss FRAND policies and enter a licensing agreement for their respective patent portfolios. As part of this agreement, Ericsson will receive license fees from Cisco.

The tie-up will mean their pooled expertise running from 5G, cloud, IP to the Internet of Things. It also covers devices and sensors to access and core networks to the enterprise IT cloud.

Ericsson CEO Hans Vestberg said both firms shared "the same vision of the network's strategic role at the centre of every company's and every industry's digital transformation".

"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."

Chuck Robbins, Cisco's chief executive officer said the announcement brought together "two visionary industry leaders, with complementary cultures and track records of innovation".

"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."

Both companies also said they would team up on a joint initiative focused on SDN/NFV and network management and control.

Ericsson and Cisco have signed a massive business and technology deal that both claim would add an extra $1bn in sales for both companies.

The firms said in a statement that both would clubbed together to offer customers routing, data centre, networking, cloud, mobility, management and control, and global services capabilities.

The statement added that the partnership would "be a key driver of growth and value for the next decade, with each company benefiting from incremental revenue in calendar year 2016 and expected to ramp to $1 billion or more for each by 2018."

The companies have signed a number of agreements covering areas such as joint research and development, a broad reseller agreement, and collaboration in key emerging markets.

Cisco and Ericsson have also agreed to discuss FRAND policies and enter a licensing agreement for their respective patent portfolios. As part of this agreement, Ericsson will receive license fees from Cisco.

The tie-up will mean their pooled expertise running from 5G, cloud, IP to the Internet of Things. It also covers devices and sensors to access and core networks to the enterprise IT cloud.

Ericsson CEO Hans Vestberg said both firms shared "the same vision of the network's strategic role at the centre of every company's and every industry's digital transformation".

 "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."

Chuck Robbins, Cisco's chief executive officer said the announcement brought together "two visionary industry leaders, with complementary cultures and track records of innovation".

"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."

Both companies also said they would team up on joint initiative focused on SDN/NFV and network management and control.

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