Announcing the partnership on Monday, Ericsson said the companies will combine their capabilities of routing data centre, networking, cloud, mobility, management and control, and global services to offer end-to-end leadership across network architectures for 5G, cloud and IP, and the Internet of Things.
The partnership is supported by multiple agreements between Ericsson and Cisco, including a global service partner agreement, as well as a broad reseller agreement. The two companies have also agreed to discuss FRAND policies and enter a licensing agreement for their respective patent portfolios.
Hans Vestberg, President and CEO, Ericsson, says: "This partnership fortifies the IP strategy we have developed over the past several years and it is a key step forward in our company transformation."
The partnership is expected to generate full-year effect from synergies, primarily in expenses of SEK 1 billion in 2018.
Vestberg also said Ericsson and Cisco will continue to explore further joint business opportunities as the partnership progresses.
In a blog post on Ericsson’s website on the partnership with Cisco,Vestberg said: “As industry leaders, we have worked together to develop a joint vision for innovation and customer success. Cisco brings their leading position in IP and a strong presence in enterprise. We bring our leadership in mobile networks, our strength in global services, and strong relationships with the world’s leading service providers.
“Between us and Cisco, we hold more than 56,000 patents, invest $11 billion annually in research and development, and operate more than 76,000 services professionals serving customers in more than 180 countries.
“The strength of this partnership lies not just in its scale, but in the depth of the solutions Ericsson and Cisco can now provide to the networking market. It is a market in transition – increasingly mobile, cloud-based, and digital – and customers are seeking end-to-end solutions to reach their full potential.
“We have evaluated the impact of acquisitions, our own development, and other strategic opportunities – and this partnership is by far the best way forward. We believe that this partnership will create the most value both for our customers and for Ericsson and Cisco.”