HCL reveals intent to obtain Cisco’s SON technology in order to encourage 5G tech distribution

On Friday, IT giant HCL Technologies disclosed its intent to obtain Cisco’s Self-Optimising Network (SON) technology for around $50 million ( around Rs 377.93 crore).

The focused entity is an asset created through the product and services business that includes the Self-Optimising Network (SON) from Cisco Systems Inc, HCL stated in a regulatory filing.

SON is a multi-vendor multi-technology (MVMT) quick-fix that maximizes the Radio Access Networks (RAN) for 2G-5G communication.

It helps users enhance performance, align the numerous technologies that incorporate a RAN, and optimize the capabilities of present infrastructures, leading in lowering capital and operational costs.

As part of the agreement, a few of the employees who currently work on Cisco’s SON technology will transfer from Cisco to HCL, a statement mentioned. But, HCL did not communicate any information related to the number of employees to go through this transfer.

The agreement – which is anticipated to be finalized by January 2021 – values “$49,999,000”.

“This acquisition, which comprises of products and services built on Cisco’s SON technology, will help HCL meet the growing needs of its customers in the telecommunications industry, which includes tier-one communications service providers globally by adding the power of Cisco’s SON’s MVMT and application support to its clients,” HCL mentioned via their statement.

HCL Technologies Corporate Vice President Sukamal Banerjee told that “HCL’s decision to make this acquisition comes in line with our Mode 3 (products and platform) strategy. As we expand our footprint in this space and support the mobility needs of our customers; the SON products and services will now be included in our telecommunications offerings,” and further added that this deal will help in gaining additional value with 5G networks. 

Both the companies involved will file for consent from both CFIUS (Committee on Foreign Investment in the US) and FEMA (Foreign Exchange Management Act, 1999) along with the Brazilian Administrative Council for Economic Defense.

Cisco, in an independent statement, insisted that supporting their customers’ and workforces’ success is a topmost priority for the firm.

“We continually look to optimize our business and have decided to divest of our self-organizing network (SON) business to our trusted IT partner HCL Technologies Ltd. Divestiture of the SON business will allow Cisco to focus our resources on 5G core and IP infrastructure,” the statement further mentioned. 

Cisco told that they are constantly developing solutions for its software-defined mobile system architecture along with investing in 5G innovations in an effort to help its service provider customers optimize their 5G investments.

“Our SON customers will be well-served by HCL’s proven expertise in implementing high-touch, flexible solutions required to scale engineering services for customers’ SON needs,” the statement further stated. 

 

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