How Has the Hardware Industry Changed in the Last Year?



Nokia-Alcatel merger

In April 2015, Nokia (NOK) agreed to acquire Alcatel-Lucent (ALU) in an all-share transaction valued at $16.6 billion. The deal will make Nokia an even bigger European (EFA) wireless equipment player. Although Nokia has been lagging behind Ericsson (ERIC) and Huawei Technologies, the merger should make Nokia the second-largest player in the hardware market.

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EMC-Dell merger

In October 2015, Dell and its investment arm, Silver Lake Partners, announced the acquisition of EMC (EMC), which includes VMware (VMW), for $67 billion. If the Dell-EMC deal comes through, the joint company will have a wide range of cloud computing, mobility, and cybersecurity offerings.

Hewlett-Packard split

In November 2015, HP announced that it was looking to split the company into HP Incorporated, which would comprise the computer and printer units, and Hewlett Packard Enterprise, which would handle business software, hardware, and services.

Cisco-Ericsson partnership

Last November, Cisco Systems (CSCO) and Ericsson announced a strategic partnership that could help both companies realize synergies of $1 billion by 2018. The companies have faced challenges in the smartphone market due to the lower demand.

Ericsson believes Cisco’s expertise in IP (intellectual property) and the enterprise space will complement Ericsson’s expertise in mobile networks. This collaboration will focus on service providers and then move to the enterprise space where it will accelerate the adoption of IoT (Internet of Things) services across sectors.


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