Feeds

Big Blue backs out of networking via Cisco deal

Agreement worth billions of dollars to both companies

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.