× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Ericsson and Cisco in network partnership to boost sales

SCI & TECH
By Reuters | November 9th 2015
The Cisco Systems logo is seen as part of a display at the Microsoft Ignite technology conference in Chicago, Illinois, May 4, 2015.

STOCKHOLM:  Mobile equipment maker Ericsson and US networking company Cisco Systems Inc said on Monday they had agreed a business and technology partnership that should generate additional revenues of $1 billion for each company by 2018.

Ericsson, whose like-for-like sales are down 7 percent so far this year and were roughly flat over the previous three years, said the partnership means new areas of revenue as it will boost its addressable market, mainly in professional services, software and the resale of Cisco products.

"We are the wireless No. 1 in the world," Ericsson Chief Executive Hans Vestberg told Reuters.

"Cisco is by far the No. 1 in the world when it comes to IP routers. Together we can create innovative solutions."

The companies said in a statement they would together offer routing, data center, networking, cloud, mobility, management and control, and global services capabilities.

"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 (up) to $1 billion or more for each by 2018," they said.

Ericsson expects full-year cost synergies of 1 billion Swedish crowns ($115 million) in 2018 due to the partnership and said it would continue to explore further joint business opportunities with Cisco.

Ericsson shares were up 2.8 percent by 0936 GMT, the biggest gainer in the STOXX Europe 600 technology index, which was up 0.4 percent.

Share this story
Cost keeps many Kenyans away from using cards in online shopping
Only one per cent of over 80,000 shoppers sampled in the 3rd quarter of this year used card to pay for products they purchased online, 27 percent preferred to pay via mobile money transfer before or after delivery while a whopping 72 percent preferred to pay in cash on delivery.
Survey: Why 40 pc of workers want to quit their jobs
More than half of 18 to 25 year-olds in the workforce are considering quitting their job. And they are not the only ones.
.
RECOMMENDED NEWS
Feedback