Dive Brief:
- Mobile equipment maker Ericsson and U.S. networking company Cisco Systems said they have agreed on a business and technology partnership.
- Ericsson has been struggling, with sales down 7% so far this year and relatively flat over the previous three years.
- The companies said the new partnership means new areas of revenue because they will tap new markets in professional services, software and the resale of Cisco products.
Dive Insight:
The companies say they plan to offer routing, data center, networking, cloud, mobility, management and control, and global services capabilities together.
"We are the wireless No. 1 in the world," Ericsson Chief Executive Hans Vestberg said. “Cisco is by far the No. 1 in the world when it comes to IP routers. Together we can create innovative solutions."
The two companies said the strategic partnership will be a key driver of growth and value for the next decade, with each company expecting to ramp up to $1 billion or more in revenue for each by 2018.
