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What resulted was confusion among their customers who felt they were being forced to choose solutions either from their networking vendor Cisco or their software supplier Microsoft. And because of this, they've had a loose partnership for nearly a decade.īut as Cisco and Microsoft each began expanding into other markets, they found themselves stepping on each other's toes. And Microsoft has long dominated the desktop and operating software market with its suite of Office products.Īnd even though the companies have been solving different IT needs, they essentially share the same customer base. Cisco has been crowned the king of the IP networking market, garnering more than 80 percent market share in the IP routing and switching equipment category, the plumbing that connects corporate networks and the Internet. Over the years, Cisco and Microsoft have each risen to dominance in their respective areas. "Even though we might each have a smaller share in the market, there will still be a much bigger pie for everyone. "If you do what is right for the customer, the whole industry will grow," he said. He believes that if Cisco and Microsoft can give customers what they want by allowing them to pick and choose overlapping and competing products from either Cisco or Microsoft, that the entire market will benefit. And he said in his opinion this has not always been the case with previous big partnerships. And in many instances partnerships have turned sour, erupting into lawsuits.īut Chambers said that keeping customers as the focus of the relationship between his company and Ballmer's is the best way to ensure success. The result has been tremendous growth, but striking the balance between partner and competitor hasn't always been easy. In the enterprise software market, companies like Oracle and SAP have both partnered as well as competed against one another. Indeed the notion of "co-opetition," or competing and cooperating, has existed for years. And we have to work together in a sophisticated fashion to give customers what they want." But the relationship is much more complex. "Some people like to see things in black or white," he said.
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And while Ballmer said he'd rather not have to compete against Cisco, he said it was a market reality.
#CISCO RIGHT TO USE LICENSE VS PERMANENT TV#
The executives, who answered questions from TV journalist Charlie Rose and other business journalists at a press event here Monday, said the decision to work more collaboratively is being driven by customers who want to be able to mix and match products and technologies from each of the companies. Microsoft CEO Steve Ballmer and Cisco CEO John Chambers said the companies will continue to compete head-to-head in several markets, but they will also work together to make sure their products interoperate. NEW YORK-Three years ago, when Cisco Systems and Microsoft launched competing security solutions, they looked to be on a collision course, but on Monday the companies' CEOs took the stage together to discuss working more closely together.