MENLO PARK, Calif., April 6, 1992 -- Cisco Systems, Inc., and NEC Corporation announced today that they have signed an OEM agreement wherein NEC will private-label and resell Cisco's complete internetworking product line, including multiprotocol routers and terminal servers. Cisco's products, including the IGS, CGS, MGS, and AGS+ routers, will become part of NEC's C & C family of computer and communication products. The agreement is effective immediately.
Although the contract allows the company to sell Cisco products on an OEM basis worldwide, NEC expects to concentrate sales of Cisco routers in the Japanese market, where the company currently holds more than 50 percent of the personal computer market and over one-third of the packet-switch and multiplexer markets.
"This agreement represents another significant milestone for Cisco, both in our efforts to provide Cisco technology to the extensive Japanese internetworking marketplace and in our strategy to partner with industry technology and market leaders worldwide," said John Morgridge, president and CEO of Cisco. "NEC is a leading systems and networking company in its market, and their decision to embrace Cisco's technology is a strong proof point for the international acceptance of Cisco routers as the internetworking standard. In the past, these types of relationships have often expanded in scope, and we will certainly be open to that possibility as time goes on."
"We have seen a rapidly increasing market demand for Cisco routers among our customers in Japan," said Mineo Sugiyama, associate senior vice president of NEC. "Cisco not only has a proven solution for large internetworks, but their technology continues to set increasingly high standards for others to follow. We are in the business of providing our customers with competitive business advantages, which is exactly what our agreement with Cisco will allow us to do with internetworking. We expect that demand for Cisco's routers will come from all themarkets, including the carrier and government areas."
