Ericsson and Cisco partner to create the networks of the future
(Thomson Reuters ONE) -
* Next-generation strategic partnership will drive growth, accelerate
innovation, and speed digital transformation demanded by customers across
industries.
* Industry-leading scale and services capability will deliver differentiated
customer value for service providers, enterprises, and the Internet of
Things ecosystem.
* Incremental revenue opportunity of $1 billion or more expected for each
company by calendar year 2018.
Ericsson (NASDAQ:ERIC) and Cisco (NASDAQ:CSCO) - two industry leaders in the
development and delivery of networking, mobility, and cloud - today announced a
global business and technology partnership to create the networks of the future.
The multi-faceted relationship will offer customers the best of both companies:
routing, data center, networking, cloud, mobility, management and control, and
global services capabilities. Together the companies plan to deliver customer
value by:
* Offering service provider customers an end-to-end product and services
portfolio, and joint innovation that accelerates new business models,
* Creating the mobile enterprise experience of the future through a highly
secure technology architecture for seamless indoor/outdoor networks, and
* Channeling the combined scale and innovation of both companies to accelerate
the platforms and services needed to digitize countries and create the
Internet of Things.
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.
SUPPORTING QUOTES
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 CALL:
Ericsson (NASDAQ:ERIC) and Cisco (NASDAQ:CSCO) will hold a conference call for
financial analysts, investors and media to brief on today's announced strategic
partnership between Ericsson and Cisco.
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 live audio webcast of the conference call will be available at:
www.ericsson.com/investors and www.ericsson.com/press
REPLAY:
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
About Ericsson
Ericsson (NASDAQ:ERIC) is the driving force behind the Networked Society - a
world leader in communications technology and services. Our long-term
relationships with every major telecom operator in the world allow people,
business and society to fulfill their potential and create a more sustainable
future.
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.
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that has been making the
Internet work since 1984. Our people, products, and partners help society
securely connect and seize tomorrow's digital opportunity today. Discover more
at thenetwork.cisco.com and follow us on Twitter at (at)Cisco.
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson
Corporate Communications, +46 10 719 69 92, media.relations(at)ericsson.com
Investor Relations, +46 10 719 00 00, investor.relations(at)ericsson.com
Cisco
Investor Relations - Marilyn Mora, +1 408 527 7452, marilmor(at)cisco.com
Media Relations - Andrea Duffy, +1 646 295 5241, anduffy(at)cisco.com
Analyst Relations - Jesse Freud, +1 408 853 0099, jefreund(at)cisco.com
Cisco Forward-Looking Statement
This release may be deemed to contain forward-looking statements, which are
subject to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These statements include, among others, statements regarding
entering into a strategic partnership to create networks of the future,
incremental revenue opportunities, delivery of customer value, and other
potential new opportunities that involve risks and uncertainties. Readers are
cautioned that these forward-looking statements are only predictions and may
differ materially from actual future events or results due to a variety of
factors, including, among other things the ability of the companies to partner
successfully, the ability to achieve expected benefits of our partnerships,
business and economic conditions and growth trends in the networking industry,
our customer markets and various geographic regions; global economic conditions
and uncertainties in the geopolitical environment; overall information
technology spending; the growth and evolution of the Internet and levels of
capital spending on Internet-based systems; variations in customer demand for
products and services, including sales to the service provider market and other
customer markets; the return on our investments and in certain geographical
locations; increased competition in our product and service markets, including
the data center; dependence on the introduction and market acceptance of new
product offerings and standards; rapid technological and market change; and
other factors listed in Cisco's most recent report on Form 10-K filed on
September 8, 2015. Any forward-looking statements in this release are based on
limited information currently available to Cisco, which is subject to change,
and Cisco will not necessarily update the information.
Ericsson Forward-Looking Statement
All statements made or incorporated by reference in this release, other than
statements or characterizations of historical facts, are forward-looking
statements. These forward-looking statements are based on our current
expectations, estimates and projections about our industry, management's beliefs
and certain assumptions made by us. Forward-looking statements can often be
identified by words such as "anticipates", "expects", "intends", "plans",
"predicts", "believes", "seeks", "estimates", "may", "will", "should", "would",
"potential", "continue", and variations or negatives of these words, and
include, among others, statements regarding: (i) strategies, outlook and growth
prospects; (ii) positioning to deliver future plans and to realize potential for
future growth; (iii) liquidity and capital resources and expenditure, and our
credit ratings; (iv) growth in demand for our products and services; (v) our
joint venture activities; (vi) economic outlook and industry trends; (vii)
developments of our markets; (viii) the impact of regulatory initiatives; (ix)
research and development expenditures; (x) the strength of our competitors; (xi)
future cost savings; (xii) plans to launch new products and services; (xiii)
assessments of risks; (xiv) integration of acquired businesses; (xv) compliance
with rules and regulations and (xvi) infringements of intellectual property
rights of others. In addition, any statements that refer to expectations,
projections or other characterizations of future events or circumstances,
including any underlying assumptions, are forward looking statements. These
forward-looking statements speak only as of the date hereof and are based upon
the information available to us at this time. Such information is subject to
change, and we will not necessarily inform you of such changes. These statements
are not guarantees of future performance and are subject to risks, uncertainties
and assumptions that are difficult to predict. Therefore, our actual results
could differ materially and adversely from those expressed in any forward-
looking statements as a result of various factors. Important factors that may
cause such a difference for Ericsson include, but are not limited to: (i)
material adverse changes in the markets in which we operate or in global
economic conditions; (ii) increased product and price competition; (iii)
reductions in capital expenditure by network operators; (iv) the cost of
technological innovation and increased expenditure to improve quality of
service; (v) significant changes in market share for our principal products and
services; (vi) foreign exchange rate or interest rate fluctuations; and (vii)
the successful implementation of our business and operational initiatives.
Ericsson discloses the information provided herein pursuant to the Securities
Markets Act and/or the Financial Instruments Trading Act. The information was
submitted for publication on November 9, 2015 at 08:30am CET.
Ericsson and Cisco partnership Nov 9 2015:
http://hugin.info/1061/R/1965277/717533.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ericsson via GlobeNewswire
[HUG#1965277]
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Datum: 09.11.2015 - 08:31 Uhr
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