Cisco/Ericsson Partnership to Miss $1B Sales Target in 2018

But Ericsson CEO says the vendor still needs the 'end-to-end' Cisco partnership.

Dan Jones, Mobile Editor

November 8, 2017

2 Min Read
Cisco/Ericsson Partnership to Miss $1B Sales Target in 2018

NEW YORK -- Ericsson Capital Markets Day -- Ericsson's CEO says that the Cisco and Ericsson partnership is unlikely to meet its sales target of $1 billion next year but that the pair will continue to work together.

"We're probably not going to meet the target of a billion in 2018," Börje Ekholm told Light Reading Wednesday, reaffirming a statement he'd made at Ericsson's Capital Markets Day earlier. But in a brief interview, he insisted that Cisco Systems Inc. (Nasdaq: CSCO) and Ericsson AB (Nasdaq: ERIC) will continue to work together on the pact.

"There's no change in the partnership," he told Light Reading. Cisco Systems Inc. (Nasdaq: CSCO) and Ericsson AB (Nasdaq: ERIC) formed the partnership two years ago to jointly work on 5G, IoT, Cloud and NFV, forecasting $1 billion in incremental revenues for each company by 2018. The pair honed the focus of the partnership in 2017. (See Cisco & Ericsson Forge Killer Partnership and Cisco & Ericsson Hone Their Partnership.)

"We need partners who have end-to-capabilities, which is why we need to work with Cisco," Ekholm said.

The CEO is promising a "robust plan for 2020" to turn the Swedish vendor around. Nonethless, Ericsson sees slowing RAN sales ahead of 5G, the need to revamp its digital services business and the strength of the Swedish Krona as a drag on the business.

Ekholm said in a longer interview with Light Reading that he is not expecting "significant" revenues from 5G in 2018 or 2019.

Ericsson is forecasting a drop in overall revenues to SEK 190 billion to SEK 200 billion ($22.7 billion to $23.9 billion) by 2020, compared to SEK 211 billion ($25.2 billion) in the last 12 months.

— Dan Jones, Mobile Editor, Light Reading

Read more about:


About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like