The 2015 Consumer Electronics Show (CES) saw Cisco Systems Inc. (CSCO) renew its partnership with Proximus, a Belgian telecom and IT service provider.
This expanded partnership throws light on Cisco’s efforts to move beyond selling networking gear and become an enterprise IT solutions provider, with competency ranging from software-defined data centers to the Internet of things.
Proximus will gain from deploying novel Cisco products whereas the latter will profit from Proximus' technology research and local go-to-market expertise, thereby co-creating new service provider offerings.
Three Areas of Growth
Cisco and Proximus stated that they have defined three primary areas for growth.
Their renewed partnership will focus on next-generation video delivery for consumers, smart city services for government organizations and service orchestration for business-to-business (B2B) consumers.
In the TV market, Proximus intends to centralize digital TV functionality on its open cloud architecture instead of the consumer's digital video recorders, enabling faster delivery of tailored video capabilities.
For example, the cloud architecture makes the integration of digital TV with third-party applications like program ratings and recommendations simpler. Subscribers who utilize their DVR space completely will be allowed to rent more storage in the cloud in the future. Proximus makes use of Cisco Videoscape to build the cloud-based TV offer.
On the smart and connected cities front, the duo plans to develop applications for consumers as well as businesses that go beyond city-wide and free wireless Internet. The partnership will speed up the progress of business models that both monetize coverage and enhance life of businesses and consumers.
Proximus is adopting Cisco's network service orchestration technology. This will let Proximus customers configure their network services online. Network orchestration will also enable automated provisioning and management of virtual as well as physical networks, enhancing customer experience and agility.
Cisco currently holds a Zacks Rank #3 (Hold). However, some better-ranked stocks include Digi International Inc. (DGII), Emulex Corp. (ELX) and Infinera Corp. (INFN). All these hold a Zacks Rank #2 (Buy).
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