Cisco and Ericsson have announced a global business and technology partnership across routing, data center, networking, cloud, mobility, management and control, and global services capabilities to support Internet of Things and mobile enterprise capabilities.
The firms will create 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 patent licensing policies and enter a licensing agreement for their respective patent portfolios, enabling unfettered joint innovation and providing certainty for customers of both organizations.
The agreement already calls for Ericsson to receive license fees from Cisco.
The combination will face all the typical execution challenges of big collaboration agreements, but some might argue the effort is, in large part, a response to the Nokia purchase of Alcatel-Lucent, against the background of vigorous competition from China-based technology suppliers.
The partnership is expected to drive incremental revenue in calendar year 2016 and $1 billion or more in annual revenue for each firm by 2018.