Ericsson and Cisco team up for future network development

Ericsson and Cisco have teamed up to collaborate on the future development of networks. The pair have formed an alliance that they say could deliver incremental of US$1 billion (€900 million) or more for each company by 2018 through joint development of products, services and technology spanning enterprise mobility, cloud-delivered IP services and the Internet of Things.

The pair said that would follow up the announcement with multiple agreements that include commitments to network transformation through reference architectures and joint development, systems-based management and control, a broad reseller agreement, and collaboration in key emerging markets.

The parties have also agreed to discuss FRAND policies and enter a licensing agreement for their respective patent portfolios, enabling joint innovation and providing certainty for customers of both organisations. As part of this agreement, Ericsson will receive license fees from Cisco.

Teams from both organizations will also begin working on a joint initiative focused on SDN/NFV and network management and control.

The agreement secured endorsements from Vodafone, AT&T and Verizon Communications.

“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 CEO, 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,” said Chuck Robbins, CEO of Cisco.