News: Two networking giants are combining to target service providers.
Ericsson and Cisco are co-developing networks to support the burgeoning demands of mobility, the cloud and the Internet of Things.
In a partnership expected to be worth $1 billion by 2018, the companies plan to combine their capabilities to offer service providers an end-to-end product and services portfolio.
They will support the mobile enterprise by providing a secure architecture to provide seamless indoor and outdoor networks.
In addition, they will aim to provide the services required to build the Internet of Things.
There will also be focus on joint innovation, including a joint initiative focused on software-defined networking, network functions virtualisation and network management.
To improve innovation capacity, the networking giants will discuss patenting issues, with Ericsson set to receive license fees from Cisco.
"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," said Hans Vestberg, CEO of Ericsson.
"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."
"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," said Chuck Robbins, Cisco CEO.
"Today’s announcement brings together two visionary industry leaders, with complementary cultures and track records of innovation."