Ericsson announces startegic partnership  with Cisco

Swedish Ericsson and US networking technology leader Cisco have teamed up to develop next-generation technology in a global partnership set to boost sales by at least a billion dollars.

Under the new strategic deal Ericsson will be able to offer more customers faster data and faster video for smartphones, according to its Swedish chief executive Hans Vestberg.

                                                

"Two world leaders in a colllaboration that is going to offer more efficient service to networks," he told the TT newswire after launching the new partnership on Monday.

Between them, the two industry leaders invest $11 billion annually in development and research, reaching more than 180 countries. Ericsson estimates that the deal with Cisco, headquartered in Silicon Valley, could generate revenues of up to $1 billion by 2018.

"The strength of this partnership lies not just in its scale, but in the depth of the solutions Ericsson and Cisco can now provide to the networking market. It is a market in transition – increasingly mobile, cloud-based, and digital – and customers are seeking end-to-end solutions to reach their full potential," wrote Vestberg in a blog post.

The partnership comes at a time of increased competition and large upheavals among the bigger tech companies on the world market, which has seen giants such as HP selling off its own next-generation businesses as it prepares to split into two companies overseeing PC and corporate services.
The Ericsson-Cisco move comes less than a month after its Finnish competitor, mobile phone giant Nokia, announced it was taking over French rival Alcatel-Lucent in a $17.6 billion acquisition.

The Local Sweden