In the networking industry today, no single company can do everything by itself. The market and technology move too fast for a vendor to succeed with a "go-it-alone" approach. Cisco's strategy of providing end-to-end network solutions by lines of business requires that it build strategic alliances to supplement its core competencies.

To fulfill that strategy, Cisco is developing a number of alliances with approximately one dozen leadership companies in three major categories: technology leaders, solution integrators, and service providers. Recent alliances include such companies as Microsoft, Intel, Hewlett-Packard, GTE, and Alcatel. The Networked Multimedia Connection program with Microsoft and Intel was formed to encourage the widespread adoption of networked multimedia applications in businesses using intranets and the Internet. Our relationship with Hewlett-Packard covers a broad range of initiatives including technology development, product integration, professional services, and customer service. In May, GTE announced that it will build a national network based on Cisco's products, enabling service providers to rapidly deploy value-added services and drive next-generation Internet offerings. And the goal of our collaboration with Alcatel is to offer complete networking solutions to telecommunications carriers and other Internet service providers worldwide.

Each of Cisco's strategic alliances will create a sustainable competitive advantage for both companies in order to optimize products, price points, distribution, and services. Through these relationships, Cisco will provide its customers the ability to become global networked businesses well into the next century.

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