Back in January, Cisco Systems, Inc. (NASDAQ:CSCO) and Ericsson partnered in a deal to virtualize the network of VHA – Vodafone Hutchison Australia with a view to modernizing the wireless carrier’s network. The deal is expected to benefit VHA greatly since the level of programmability and agility will be greatly enhanced.

Lower capex and opex

VHA will also be in a better position to take advantage of new emerging services. This is because with its infrastructure and network simplified, the wireless carrier will have been equipped with the tools that allows it to be more pro-active, agile and innovative in the manner in which services are delivered to the market. Consequently, this will result in enhanced customer experiences as well as reductions in capital expenditure and operating expenditure.

With the transformation, VHA will also be in a better position to unveil new applications that will improve and enhance the services available to customers and also make the user experience better.

“The new infrastructure opens the door to new business models and markets, such as Internet of Things for Vodafone – we are excited about the future prospects this partnership offers,” VHA’s Chief Technology Officer, Kevin Millroy said.

Ongoing partnership

This was not the first joint project that Ericsson and Cisco were participating in as they formed a technology and global business partnership in late 2015 to build networks that will serve the needs of not just today but of the future. Last year, various companies were beneficiaries of the partnership as they awarded the two contracts worth millions of dollars. Some of these firms include the Carribean entity, Cable & Wireless; Aster Dominican Republic, Dominican Republic; 3 Italy, Italy and Vodafone Portugal, Portugal.

Revenue targets

By 2018, plans are for the two to have added to their revenue base amounts totalling to at least $1 billion each. For their clients, the major advantage is that they get to enjoy product and service offerings from both in areas such as mobility, cloud, networking, data center and routing.

On Friday shares of Cisco Systems Inc fell by 0.29% to close the day at $34.16.

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