Cisco and Ericsson on Monday reported a tremendous new partnership that they believe will bring in $1 billion for each company by 2018.

Cisco is considered a pioneer in things that are associated to PC networking and is especially strong in selling its gear to market corporations and Government too. Ericsson is best recognized for its computer networking devices that produce wireless networks and is acknowledged as a pioneer in selling its gear to service providers (Telecom mostly). Ericsson is also known in the business for its big consulting services unit.

Each of them needed to accomplish something to battle the merger madness going on surrounding them. This partnership is an immediate reaction to Nokia's $17 billion purchase of Alcatel-Lucent, announced publicly in April. Nokia and Alcatel-Lucent were two of Ericsson's greatest competitors in providing equipment to the telecommunications industry, Business Insider reports.

The multi-faceted relationship will offer clients the best of both organizations: routing, data center, networking, cloud, mobility, management and control and worldwide services capabilities.

As per a report from GSMA intelligence, the total number of 4G LTE connections over the world should increase from 0.4 billion in 2014 to 2.5 billion in 2020. Consequently, an arrangement with Cisco may be an effort to counter the danger postured by Nokia's obtaining of Alcatel, as reported by Market Realist.

According to Cisco's press release, "In a world driven by mobility, cloud and digitization, the networks of the future will require new design principles to assure they are agile, autonomous and high secure. Ericsson and Cisco will meet this challenge together by offering end-to-end leadership across network architectures including 5G, cloud, IP and Internet of Things - from devices and sensors to access and core networks to the enterprise IT cloud."

Hans Vestberg, President CEO Ericsson says, "I am excited to work with Cisco on counting to shape Networked Society. Foremost we share the same vision for network's strategic role at the center of every company's and every industry's digital transformation. Initially, the partnership will focus on service providers, then on opportunities for the enterprise segment and accelerating the scale and adoption of IoT services across industries. For Ericsson, this partnership also fortifies the IP strategy we have developed over the past several years, and it's a key move forward in our own transformation," as reported by Newsroom Cisco. 

Cisco and Ericsson will be reselling each other's items and together producing new products for a bunch of best in class new interface hardware business.