Cisco's Partnership Spree Continues With Airtel & TIM Deal

Cisco Systems, Inc. (NASDAQ:CSCO) recently entered into a strategic alliance with India's leading telecom services provider, Bharti Airtel (Airtel), to enhance real-time customer experience. The team up is aimed at developing advanced self-optimizing network (“SON”) software to enable the mobile carrier to plan, configure, manage and optimize cellular networks automatically.

Cisco, Airtel Team Up

The collaboration will help Cisco to integrate Airtel’s multi-vendor, multi-domain network with its open, hyper-programmable architecture and SON services, consequently ensuring quality of customer experience. The team up of Cisco and Bharti Airtel is well strategized to cater to the thriving mobile data consumption usage demand in India.

SON is used to speed up the planning, configuration, optimization and healing of mobile telecom networks. Per MarketsandMarkets, the SON market is projected to grow at a CAGR of 10.1% to $6.419 billion by 2020 (between 2014 and 2020). This collaboration will streamline data and voice traffic and build an automated network platformwhichwill boost SON capabilities of deployed platform.

Cisco, TIM Team Up

This Apart, Cisco also entered into a partnership with Itlay-based mobile and fixed telecommunication services provider, TIM, to offer "TIM Safe WEB", in order to protect small business users from malware and other malicious cybersecurity threats.

TIM Safe Web is a highly secure platform which offers customers a validated, competent solution, which will bolster protection from malware threats without compromising on reliability. The alliance will merge Cisco’s Umbrella cloud-based security platform with TIM’s network, delivering customized security solutions for small business markets.

With rapid digital transformation, more and more devices, applications and users are getting connected to the Internet every day. Though this translates to greater opportunities for technology companies, it has also made organizations and businesses more vulnerable to security threats. The partnership is intended to safeguard Cisco’s clients and customers from malware and abuse with the use of improved security software.

Cybersecurity Ventures reportedly estimates that the global cybersecurity space will grow at a CAGR of 9.8% from around $106.3 billion in 2015 to around $170.2 billion by 2020. Approximately $1 trillion is expected to be spent globally on cybersecurity from 2017 to 2021. We believe that by adding TIM to its existing solutions, Cisco will record considerable gains.

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To Conclude

Cisco has also announced various product innovations and other partnership programs of late. With emphasis on multicloud, the company announced its HyperFlex platform and Container Platform, which is anticipated to further expand product portfolio. The company is also reportedly working on a hyperconnected car in collaboration with Hyundai, which will help it in penetrating the smart-vehicle solutions market.

We believe that Cisco’s expanding footprint in the rapidly growing security market looks promising. The company’s security solutions continue to add customers. Additionally, the company’s partnerships with Viacom (NASDAQ:VIAB) , Alphabet’s (NASDAQ:GOOGL) division Google and Alibaba (NYSE:BABA) will help Cisco gain significant traction in the cloud and IoT space in the long run.

Cisco’s extended partnerships with the likes of Apple (NASDAQ:AAPL), IBM (NYSE:IBM) and Microsoft (NASDAQ:MSFT) are also likely to bolster growth, particularly in the cloud and IoT. Moreover, Cisco joined forces with Aon and Allianz (DE:ALVG) to provider better cyber risk management solutions for business, which is another positive.

Cisco carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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