Cisco and Ericsson today announced a wide-ranging global partnership that will pool the companies’ talents in routing, data center, networking, cloud, mobility, management and control, and global services capabilities.
The team up is targeting service provider customers with end-to-end products for new business models and mobile enterprise customers with secure technology architecture for indoor and outdoor networks. The companies also intend to use their combined scale to push global digitization and the Internet of Things (IoT).
“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,” Cisco CEO Chuck Robbins said in a statement.
“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. 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,” Ericsson CEO Hans Vestberg said in a statement.
The partnership is expected to drive growth for each company that will amount to incremental revenue increases in 2016 and up to $1 billion or more for each by 2018.
Cisco and Ericsson will also begin working on a joint initiative focused on SDN/NFV and network management and control.
The partnership has already drawn praise from telecoms from around the world.
“We welcome the partnership between Ericsson and Cisco which we believe will accelerate the pace of innovation across the communications industry as ultrafast networks, cloud services, and the Internet of Things become increasingly central to our customers’ needs,” Vodafone Group Chief Vittorio Colao said in a statement.
“Cisco and Ericsson’s announcement further reinforces the importance of seamlessly integrating IP and wireless solutions. This type of initiative is in line with the plans and investments we’ve laid out over the last four years for integrated solutions,” AT&T CEO Randall Stephenson said in a statement.
Upon news of the team-up, Ericsson stock climbed nearly three percent while Cisco stock fell slightly.