Ericsson, Cisco Partner to 'Digitize Entire Countries'
NEWS ANALYSIS: Realistically, the agreement appears to boost both companies to a new, even larger-picture-level in the world of IoT networking.Ericsson, whose days making cell phones are far, far away in its rear-view-mirror past, has been moving its intellectual property into developing IT infrastructure products and services for ISPs, government agencies and the military for years. Nothing proves this point more than the huge global partnership the Stockholm-based company announced Nov. 9 with IT networking king Cisco Systems, a deal that is all about the Internet of things and one the two companies want to use to build what they call "networks of the future." This includes private, public and hybrid clouds, along with powerful new mobile networks for smartphones, sensors and automated devices. What They Together Will Bring to the Market Cisco and Ericsson, in a conference call to analysts and reporters Nov. 9, said they will deliver new enterprise value by:
--offering service-provider customers an end-to-end product and services portfolio, along with joint innovation that accelerates new business models;
This isn't too far afield from the recent Dell-EMC merger—unlike this deal, an actual acquisition—which brought together two of the largest data center storage makers in the world. It's also interesting that Ericsson-Cisco and Dell-EMC are both about old-school IT survivors joining forces to stay ahead of all the young, more agile companies. With the recent Western Digital-SanDisk merger, one could say there may be a trend in the old veterans banding together and circling the wagons, like the pioneers did in the settling of the American West. The IP the two companies share is quite impressive. Ericsson and Cisco said they have a combined 56,000-plus patents, $11 billion of research and development investment, and more than 76,000 services professionals serving customers across more than 180 countries. What the CEOs Say "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," Cisco CEO Chuck Robbins said in a prepared statement. "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." "I am excited to work with Cisco on continuing to shape the Networked Society," said Hans Vestberg, Ericsson president and CEO. "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."