Cisco Systems And Ericsson To Sign A Strategic Partnership Deal
Cisco and Ericson will be teaming up under the strategic partnership deal where both companies will help in boosting each other businesses.
Cisco Systems Corporation announced that it has signed a strategic deal with Ericson to benefit each other’s businesses. This is not another massive enterprise merge where two power houses of the same sector get merged and work under one name. Two of the biggest names in the network and equipment sector whose technologies are very much used in almost every communication networks and devices are all set to join hands together in order to boost each other’s business in the coming years.
According to Tech Crunch, Ericson and Cisco Systems have just announced a deal signed between them where they are now strategic partner. Both parties will be assisting and collaborating with each other ‘on sales and products covering virtually the whole range of their respective businesses’. The businesses will include carrier equipment and services, enterprise equipment and services, and intellectual property. The companies will also handle the products side which includes networking, routing, data center, cloud, management control, mobility, and global services capabilities.
But he CEO of Ericson, Hans Vestberg, stated “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.”
Sources suggest that the company has already set sights to increase its sales and revenues in the coming times because of this partnership. As numbers are to be believed, both companies expect to add a massive $1 billion more in sales and revenues just by assisting each other. The company, so far, has refused to provide details regarding how it will be achieving such a big target. Cisco and Ericson have a combined 76,000 work force employment and has spread its global footprints in more than 180 countries to grow its business domestically and internationally.
Tech Crunch approached Cisco to give details about the financial side of this deal on which the spokesperson of the company stated, “Details of specific investment levels made by each partner are confidential”. Furthermore, the spokesperson of Ericson claimed that no parties have made any transaction or investment in each other’s companies as of now.
Mr.Vestberg added, “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.”