IBM Signs Networking Deal With Cisco - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


IBM Signs Networking Deal With Cisco

IBM retreated from the IP networking market today, selling the patents and intellectual property for its IP and Ethernet switches and routers to Cisco Systems.

The announcement was part of a five-year, $2 billion deal under which IBM will provide Cisco with components--primarily chipsets--to build its switching equipment. The companies also announced plans to jointly offer network consulting and design services, including procurement, implementation, and maintenance services.

IBM plans to phase out the development and marketing of its networking products, according to Michel Mayer, general manager of networking in IBM's technology group. These products include the Nways switches and other IP and Ethernet equipment. "It is not our intention to manufacture, sell, or continue" development of IBM IP and Ethernet networking equipment, said Selby Wellman, senior VP of Cisco's Interworks business division.

IBM said it will continue to support existing switch customers, and the companies said they will develop "migration paths" from IBM IP and Ethernet equipment to Cisco products. Also, IBM will retain ownership and continue developing its token ring equipment, host-based SNA systems, Ethernet adapters, and other networking equipment.

Analysts say IBM's move away from networking equipment frees the company to focus on markets it is more interested in. "IBM sees its future in selling E-commerce software, servers, and other products for E-business," said Joseph Skorupa, a director at Ryan, Hankin & Kent.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
Is Cloud Migration a Path to Carbon Footprint Reduction?
Joao-Pierre S. Ruth, Senior Writer,  10/5/2020
IT Spending, Priorities, Projects: What's Ahead in 2021
Jessica Davis, Senior Editor, Enterprise Apps,  10/2/2020
Register for InformationWeek Newsletters
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll