Ericsson, Cisco Announce Partnership: Here's What You Need to Know

Ericsson (ERIC) and Cisco Systems (CSCO) are working together to create “the networks of the future.”

The two technology heavyweights this week announced a partnership to offer leadership across network architectures for fifth-generation (5G) wireless systems, cloud and IP and the Internet of Things (IoT).

Ericsson and Cisco have entered into a global service partner agreement and a broad reseller agreement.

The companies also have agreed to discuss FRAND policies and enter a licensing agreement for their respective patent portfolios.

Ericsson said the partnership will allow it to extend its addressable market to $1 billion or more of additional sales by 2018.

“This is an exciting partnership that will drive growth, accelerate innovation, and ensure rapid deployment of the digital transformation demanded – and needed – by customers across industries. With the future networks we develop with Cisco, Ericsson will continue to shape the Networked Society,” Ericsson CEO Hans Vestberg wrote in a blog post. 

The partnership could help Cisco further increase its revenues and extend its global reach as well.

Together, Ericsson and Cisco boast a combined 56,000+ patents, $11 billion in research and development investments and more than 76,000 services professionals supporting customers worldwide.

Ericsson noted that both companies will continue to explore additional joint business opportunities as the partnership progresses.

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