Two giants of the telecoms world have announced a strategic partnership that could be worth $1 billion each.
Ericsson and Cisco believe they can deliver differentiated customer value across 5G, cloud, IP, and the Internet of Things.
Customers will see a joint end-to-end product and service portfolio and joint innovation on a number of product lines. Included are routing, data center, networking, cloud, mobility, management and control, and global services capabilities.
“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,” said Hans Vestberg, President and Chief Executive Officer, Ericsson.
“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. 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, added Chuck Robbins, Chief Executive Officer, Cisco.
The move has the support of telcos Vodafone, Verizon and AT&T. Competitors on both sides may not be as welcoming.
