Ericsson & Cisco: Big Splash in the Telecom Pool
Ericsson and Cisco pool their strengths into a formal partnership arrangement, where Ericsson fills its portfolio gap with the Cisco IT routing portfolio, and Cisco gains additional markets and new business with Ericsson’s Managed Services. This is a needed development and aside from a merger or acquisition, about the only way to compete with the full End-to-End IP networking offered by Huawei and soon by Nokia. In the bigger picture, it appears the transaction value is tilted in Ericsson’s favor, that is, Ericsson needs this more than Cisco, but it is still a positive move for both firms.
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