Cisco and Ericsson partner for “networks of the future”

Cisco Systems and the Swedish telecom giant Ericsson Monday announced a global business and technology partnership to create “networks of the future.”

The partnership has the potential to create $1 billion in business for each of the companies by 2018, according to the announcement, which was made jointly in Stockholm by Ericsson and in San Jose by Cisco.

“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.

He said the two companies have been working for a year on the alliance.

Cisco and Ericsson are working on a cross-licensing agreement for their patent portfolios, according to the announcement. Cisco will pay Ericsson licensing fees as part of the agreement.

The alliance is aimed at giving the two companies – both challenged by rapid changes in computing and data management – an edge in offering businesses mobile computing technology,
the rapidly expanding Internet of Things, networking and security.

The companies promised to develop technology that would give them “leadership across network architectures including 5G, cloud, IP, and the Internet of Things — from devices and sensors to access and core networks to the enterprise IT cloud.”

Hans Vestberg, President and Chief Executive Officer, Ericsson, said the partnership will first focus services, followed by enterprise networking and accelerating the adoption of Internet of Things services.

“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,” Westberg said.

Photo:Cisco headquarters (Mercury News archives)


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