LG-Ericsson and Brocade announced a strategic partnership through which LG-Ericsson will offer industry-leading networking solutions from Brocade and enable both companies to jointly pursue business opportunities in the high-growth Korean Information and Communications Technology (ICT) market.
South Korea ranks among the top ten Organization for Economic Co-operation and Development (OECD) countries with a total size of nearly $75 billion per year.
This partnership leverages the complementary strengths of both companies. delivers innovative networking solutions for both enterprise and data center professionals who want to simplify the deployment of new capabilities such as virtualization, unified communications, cloud-based architectures and IPv6. LG-Ericsson is a leader in the development of global communications products and a leader in cutting-edge fixed and wireless telecommunications and networking solutions in Korea.
Following the conclusion of theagreement, LG-Ericsson will build a complete Layer 2 to Layer 7 network product portfolio by adding Brocade core Layer 2/3 enterprise switch products with field-proven technology and stability under the LG-Ericsson “iPECS” (IP Enterprise Communications Solution) brand.
Furthermore, the two companies will further explore the feasibility of jointly developing convergence solutions that integrate Brocade data products and LG-Ericsson voice solutions to address the diverse demands of the networking market. Brocade is delighted to partner with LG-Ericsson to deliver a new portfolio of high-performance VoIP solutions to Korea,” said Deb Dutta, vice president of Brocade Asia Pacific. The unique combination of both companies’ technologies will serve that market’s ever-increasing demands of bandwidth, functionality and reliability in the high-growth communications segment.”
International Data Corporation (IDC) predicts that growth in the Voice over Internet Protocol (VoIP) service market will continue while the home phone market significantly drops off. IDC recently reported that the Korean VoIP service market, except wholesale, grew from 2008 to 2009 and continues to escalate. More specifically, revenue increased from KRW279.1 billion in 2008 to KRW469.3 billion in 2009. And its compound annual growth rate (CAGR) is likely to rise to 37.2 percent in the next five years to approximately KRW1.14 trillion by 2013.
To address these substantial networking business opportunities, LG-Ericsson plans to offer five Brocade Ethernet switching and routing product families designed for data center and enterprise environments. LG-Ericsson plans to launch these Brocade networking solutions under its “iPECS” brand throughout Korea in April, 2011.
Brocade leads the industry in providing comprehensive network solutions including Layer 2/3 switches and routers,” said SH Kim, vice president and general manager of LG-Ericsson Enterprise Solutions. Combining core capabilities of LG-Ericsson’s voice technology expertise and Brocade’s strength in Ethernet networking, I am confident that both companies will create synergies to build market share in the Korean market.”
Meanwhile, LG-Ericsson has taken leadership by delivering best-in-class products in Korea’s Layer 2/3 switch market worth over KRW500 billion. It aims to become one of top three companies in the data network market in Korea by 2011, and lead the markets in data and voice convergence solutions.