Story image

Ericsson-Cisco partnership: what are the implications?

02 Dec 2015

On November 9 2015, Ericsson and Cisco announced a Global Strategic Partnership to provide end-to-end CSP product and service offerings to accelerate digital transformation amid a rapidly shifting telecom market and rising competition from Huawei, Nokia and others for emerging 5G, cloud and IoT markets.

The partnership, which comprises a joint SDN/NFV strategy, makes sense. Both players have strong complementary CSP product portfolio capabilities. The move will support Ericsson’s endeavor to further leverage its footprint in the connected society business, which requires strong expertise in respective enterprise industry verticals. Cisco will benefit from Ericsson’s leadership position in the wireless networking, as well as and traditional operations support systems and strong professional global services capabilities that enable CSP transformations.

Rising market pressure urged both players to take actions in order to deliver fast results through the delivery of end-to-end capabilities in mobility, networking, routing, data center, cloud management and control. The partnership is an alternative to a merger, which would have been disruptive for the operations of the company’s daily business, and this path would have taken long to show desired results.

Instead both companies have developed a firm strategy to co-invest in joint R&D product development and engineering, joint sales and go-to-marketing across their entire business. Both companies have put in place CEO-led governance to ensure the execution of the strategy in place.

The first stage of the partnership will focus on reselling Cisco’s networking products into CSPs, global services partner agreements and joint cloud and 5G architecture customer engagements. Both companies are also planning joint product development and go-to market for SDN/NFV amid a rapidly shifting telecom market and the need for virtualised and software-defined network infrastructures.

Ericsson and Cisco both are end-to-end SDN/NFV solution companies, yet with complementary strength: Cisco with Enterprise focus and InterCloud, Ericsson with its VoLTE IMS architecture and Cloud framework as well as OSS orchestration assets. Ericsson and Cisco are working on a common architectural blueprint for a new end-to-end SDN/NFV network and E2E orchestration value chain leveraging respective core strength.

The new collaboration might be disruptive to the current SDN/NFV vendor market, because it potentially will result in a new end-to-end SDN/NFV network, software and services ecosystem. The foundation is already laid out: Ericsson is providing strong wireless network and traditional OSS domain management knowledge, while Cisco addresses vital next-generation IP, cloud and data center and enterprise requirements.

Capabilities for both, legacy network and OSS as well as new virtualisation and data center capabilities will be critical, as we will see interim hybrid CSP architectures before CSPs will move over to pure SDN/NFV infrastructures over the next 5-10 years.

In terms of interoperability, both players have standardised and collaborated on NETCONF and YANG standards initiatives previously, which will provide a strong common denominator for the formation of a new ecosystem and the strategic go-to-market partnership on the SDN/NFV front.

However, the market might not be ready yet to adopt full fletched end-to-end SDN/NFV solutions, instead continuing in its best-of-breed sourcing mode (except greenfield CSPs like DT Croatia).

Article by Martina Kurth, Gartner research analyst

NVIDIA announces Jetson Nano: A US$99 tiny, yet mighty AI computer 
“Jetson Nano makes AI more accessible to everyone, and is supported by the same underlying architecture and software that powers the world's supercomputers.”
Slack doubles down on enterprise key management
EKM adds an extra layer of protection so customers can share conversations, files, and data while still meeting their own risk mitigation requirements.
NVIDIA introduces a new breed of high-performance workstations
“Data science is one of the fastest growing fields of computer science and impacts every industry."
Apple says its new iMacs are "pretty freaking powerful"
The company has chosen the tagline “Pretty. Freaking powerful” as the tagline – and it’s not too hard to see why.
NZ ISPs issue open letter to social media giants to discuss censorship
Content sharing platforms have a duty of care to proactively monitor for harmful content, act expeditiously to remove content which is flagged to them as illegal.
Partnership brings AI maths tutor to NZ schools
“AMY can understand why students make a mistake, and then teach them what they need straight away so they don't get stuck."
Polycom & Plantronics rebrand to Poly, a new UC powerhouse
The name change comes after last year’s Plantronics acquisition of Polycom, a deal that was worth US $2 billion.
Unencrypted Gearbest database leaves over 1.5mil shoppers’ records exposed
Depending on the countries and information requirements, the data could give hackers access to online government portals, banking apps, and health insurance records.