PRESS RELEASE — STOCKHOLM, SWEDEN and SAN JOSE, CA–(Marketwired – Nov 9, 2015) – Cisco (
In a world driven by mobility, cloud, and digitization, the networks of the future will require new design principles to ensure they are agile, autonomous, and highly secure. Ericsson and Cisco will meet this challenge together by offering end-to-end leadership across network architectures including 5G, cloud, IP, and the Internet of Things — from devices and sensors to access and core networks to the enterprise IT cloud. Customers will be able to accelerate their business transformation by drawing on the parties’ complementary capabilities, including global services capabilities such as consulting, integration, and support to managed operations across IT and networks.
Today’s announcement will be supported by 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 market segments. The parties have also agreed to discuss FRAND policies and enter a licensing agreement for their respective patent portfolios, enabling unfettered joint innovation and providing certainty for customers of both organizations. As part of this agreement, Ericsson will receive license fees from Cisco.
Ericsson and Cisco are strong and complementary partners, with a combined 56,000+ patents, $11 billion of research and development investment, and more than 76,000 services professionals serving customers across more than 180 countries.
The strategic partnership will be a key driver of growth and value for the next decade, with each company benefiting from incremental revenue in calendar year 2016 and expected to ramp to …
… $1 billion or more for each by 2018. New and greater opportunities are also expected, as the partnership enables both companies to drive their efforts and investments to deliver value in growth markets.
Teams from both organizations will also begin working on a joint initiative focused on SDN/NFV and network management and control.
Centerview Partners advised on the strategic partnership.
Hans Vestberg, President and Chief Executive Officer, Ericsson
“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.”
Chuck Robbins, Chief Executive Officer, Cisco
“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.”
Vittorio Colao, Group Chief Executive, Vodafone
“We welcome the partnership between Ericsson and Cisco which we believe will accelerate the pace of innovation across the communications industry as ultrafast networks, cloud services, and the Internet of Things become increasingly central to our customers’ needs.”
Randall Stephenson, Chairman and Chief Executive Officer, AT&T
“Cisco and Ericsson’s announcement further reinforces the importance of seamlessly integrating IP and wireless solutions. This type of initiative is in line with the plans and investments we’ve laid out over the last four years for integrated solutions.”
Roger Gurnani, EVP and Chief Information and Technology Architect, Verizon Communications
“This global partnership has the potential to reshape …
… the industry. We are excited about working with Ericsson and Cisco, and look forward to a partnership that will accelerate the development of new wireless technologies.”
Invitation to Media and Analyst Briefing
The briefing will begin at 14:15 CET (13:15 BST in the UK, 08:15 EST and 05:15 PST in the US, and 21:15 local time in Japan).
Ericsson President & CEO Hans Vestberg and Cisco CEO Chuck Robbins will comment on the announcement and take questions.
Sweden: +46 8 5055 6468 (toll-free Sweden: 020 088 3817)
International/UK: +44 203 426 2845 (toll-free UK 0808 237 0066)
US: +1 646 722 4898 (toll-free US +1 866 928 6048)
Please call in at least 15 minutes before the conference call begins. As there are usually a large number of callers, it may take some time before you are connected.
A replay of the conference call will be available from November 9, 16:00CET until 16:00 CET on November 16, 2015.
Sweden replay number: +46 8 5664 2638
International replay number: +44 20 3426 2807
Replay passcode: 664119#
Notes to Editors
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Our services, software and infrastructure — especially in mobility, broadband and the cloud — are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.
With approximately 115,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world’s mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions — and our customers — stay in front.
Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2014 were SEK 228.0 billion (USD 33.1 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.