Can Cisco Systems, Inc. (NASDAQ:CSCO) And Apple (AAPL) Work Together Without Competing Priorities?


The recently announced collaboration between Cisco Systems, Inc. (NASDAQ:CSCO) and Apple Inc. (NASDAQ:AAPL) has seemed like a union of strange bedfellows. However, looking at what is happening in the communications world today, there is every reason Cisco and Apple would like to work together. Apple is looking to deepen its presence in the corporate communications field while Cisco is worried about the changing corporate communications landscape. Therefore, by collaborating, Cisco and Apple can tap into each other’s strengths for a better tomorrow.

The increasing adoption of smartphones and tablets in the enterprise world is expanding business opportunities for the vendors of the handsets. However, providers of corporate communications gear like Cisco Systems, Inc. (NASDAQ:CSCO) aren’t very comfortable with the way smartphone vendors are working to change how enterprises communicate.

Pairing capabilities

Given the changing world of telecommunications, it is only wise that Cisco and Apple leverage their unique capabilities to offer rich communication solutions rather than going for each other’s necks. That seems to be the reasoning behind the surprising partnership between the two companies announced earlier this week.

Defending share in corporate communications market

For Cisco Systems, Inc. (NASDAQ:CSCO), the collaboration will provide an opportunity to defend share in the rapidly changing corporate communications space, which is being turned on its head by software-based phones, alongside other factors. By embracing Apple, Cisco can make its IP-phone systems more relevant so that customers don’t have to jettison them away in favor of emerging trends, for instance.

Expanding in commercial communications field

In the case of Apple, riding on the shoulders of Cisco to expand penetration in the enterprise communications market is a significant opportunity. Apple already has an enterprise-focused deal with the International Business Machines Corp. (NYSE:IBM), and Cisco will be able to accelerate its growth in the market.

Better together

Therefore, while Cisco Systems, Inc. (NASDAQ:CSCO) and Apple may have had competition priorities in the way they do business, going on with a bruising battle in is nobody’s interest if they can pair their efforts to solve their challenges.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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