How will Cisco benefit from the deal?
Broadsoft is expected to help Cisco offer a broader range of collaboration solutions for its customers. The BroadSoft agreement will complement Cisco's business as its product offering will be aligned to HCS (hosted collaboration solution) offerings focused on the company and Cisco facilities. Cisco general manager Chuck Robbins told CNBC that the agreement would allow Cisco business and small business customers to better connect with consumers.
This agreement would help Cisco to diversify its business away from its stagnating switches and routers, which have had poor performance and have seen revenue declines. Like other technology companies, Cisco also wants to focus on high growth areas such as security, the Internet of Things (IoT) and cloud computing. Previously, Cisco partnered with Google Google (GOOGL) to get support in the cloud. The partnership involves the development of new hybrid solutions in the cloud.
Acquisitions in the past
Cisco has relied on acquisitions in recent years to boost revenue growth. In its fiscal 1Q18, the company acquired Springpath, Viptela and Observable Networks to strengthen its superior line. BroadSoft has also served large telecommunications companies such as Verizon (VZ) and AT & T (T), which then resell the software to their commercial customers.
How do Ericsson and Verizon progress in the 5G race?
Ericsson received 5G Verizon contracts
Verizon (VZ) recently chose Ericsson (ERIC) to provide network equipment for its pre-commercial testing of its fixed 5G wireless service (fifth generation) in the second half of 2018. Using Ericsson's technology, Verizon is scheduled to deploy its next network of 5G generation in selected US markets for the 5G radio access network (or RAN), core network, as well as transport services and associated services.
In addition to Ericsson, mobile phone company Verizon has worked with Samsung, Nokia (NOK), Cisco Systems (CSCO) and Intel (INTC) in its 5G initiatives.
Ericsson’s rapid development of 5G technology
Ericsson and Verizon have been conducting fixed 5G wireless tests over the past year using the mmWave spectrum in multiple areas with diversified geographies and housing densities. These tests are very important to understand the 5G technologies and the mmWave propagation used in Verizon 5GTF and in the 3GPP 5G NR standard.
In fact, Ericsson participates in multiple tests with global operators to boost its 5G technology. Earlier this year, Ericsson collaborated with technology giant Intel to launch an open industry platform, 5G Innovators Initiative (5GI2), to offer Internet of Things (IoT) solutions to industries ranging from aircraft and industrial plants to manufacturers and retailers.
5G technology is the future of the mobile ecosystem
Recently, 5G has achieved a rapid boost in the space of mobile technology. The 5G network has the potential to drastically reduce latency, increase download and upload speeds, improve network reliability and spectral efficiency. According to Statist research, 5G wireless subscriptions are projected to reach 545 million by 2022.
