Feeds

Big Blue backs out of networking via Cisco deal

Agreement worth billions of dollars to both companies

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

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. ®

Top three mobile application threats

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.