Ericsson and Cisco have entered into a partnership to create networks which will include routing, data center, networking, cloud, mobility, management and control, and global services capabilities.
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,” commented Hans Vestberg, President and CEO, Ericsson.
As a result of the partnership, Ericsson will extend its addressable market and is expected to generate USD 1 billion or more of additional sales by 2018. The extended addressable market is primarily in professional services, software and resell of Cisco products. The additional sales are expected to be accretive to operating income already in 2016. The partnership is expected to generate full-year effect from synergies, primarily in expenses of SEK 1 billion in 2018.