Ericsson and Cisco Announce Business and Technology Partnership
Earlier this month, news of a business and technology partnership between companies, Ericsson and Cisco was released. This global partnership would design and create the networks of the future. Cisco Systems Inc. is an American multinational technology company, which designs, manufactures, and sells networking equipment. Ericsson is a Swedish, multinational provider of communication technology and services. Their vision is one where every person and every industry is empowered to reach their full potential through a Networked Society. You can see why this partnership makes sense, and would be extremely beneficial when it comes to technology.
What the two companies could offer consumers
Customers would be offered routing, data center, networking, cloud, mobility, management & control, and global services capabilities. Instead of going through each company separately, consumers now have an easier, one stop shop, for networking and communication technology. It is said that the relationship between the two companies would create a mobile enterprise experience of the future, through highly secured technology. Each company is expected to gross over $1 billion in revenue next year alone, and partnering together can allow for more growth and opportunities.
Recent talks about no partnership
Shortly after the partnership between Cisco and Ericsson was announced, Ericsson’s CEO claimed the partnership never truly existed. Neither company is interested in Cisco buying Ericsson. Hans Vestberg, CEO for Ericsson, claims that there was never any discussion about a merger with, or acquisition by Cisco. He also details that there has been talk in the media for a long time about a partnership between the two companies, but the talk was merely a rumor. Officials for Cisco have not responded to the news that the partnership with Ericsson was not in the works. The official Cisco website did not provide any news articles or blog articles relating to the Ericsson partnership.
Good thing or bad thing?
Information that originally came out about the partnership between Cisco and Ericsson claimed it to be a phenomenal partnership. They could become world leaders in business and technology. If the companies came together, talented individuals in each field would have had the opportunity to work together to inspire new innovation in technology. Some people have made it very clear that the partnership rumors were a relief, and they are glad a partnership between the two companies is not going to take place, at least anytime soon. This is because both companies are such huge names by themselves, and a partnership might highlight one company over the other.
It is interesting that in just one week, Ericsson has responded that the partnership with Cisco was simply a rumor. Several news reports that came out in the beginning of the month stated that the CEO of Cisco, Chuck Robbins, had made comments about both companies partnering together, and why it would be a great match, one which would allow both companies to focus on their strengths. Hopefully more information about the partnership, whether really a big rumor or not, will come out in the following weeks. We especially want to know what Cisco Systems Inc. has to say, in response to Vestberg’s comments on the matter.