Feeds

Big Blue backs out of networking via Cisco deal

Agreement worth billions of dollars to both companies

  • alert
  • submit to reddit

Internet Security Threat Report 2014

IBM has announced a five-year deal with Cisco Systems that will let Big Blue bow out of the routing and switching marketplace. IBM will supply networking vendor Cisco with network technology, components and services in the deal which was yesterday valued at an estimated $2 billion. Cisco will buy IBM's network equipment business, which will let IBM phase out some of its older switch and router product lines. IBM will keep the network equipment which is used to link mainframe computers. IBM thinks that there is more profit to be made from supplying parts and services to old rivals such as Cisco than trying to compete by investing in its own networking kit business, it was stated. IBM said this was just the beginning – and it expected to sign more deals in the communications sector. Selby Wellman, senior VP of Cisco Interworks Business Division, said the supply deal would add whopping sales amounting to billions of extra dollars for both companies. The specifics involve Cisco buying around 200 patents for network equipment such as routers and switches from IBM's Networking Hardware Division. The move will increase sales of IBM custom computer chips used in Cisco networking kit. Sources estimated that the deal would also pull in $3 billion of revenue for IBM in extra service charges. IBM added that it would support all of its Cisco network installations. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.