Tech giants Cisco, Microsoft team up

Microsoft CEO Steve Ballmer made assurances that there would be no corporate "jujitsu." Cisco Systems' CEO John Chambers said he trusted Microsoft.

In an unusual press dog-and-pony-show to showcase their evolving business alliance, the leaders of the two tech giants Monday described how an increasing level of collaboration, as well as "respectful" competition, will drive the next wave of innovation and business success.

The alliance between Cisco and Microsoft, Chambers said, "could be a role model for our industry."

Seven initiatives, ranging from security to entertainment, were announced in a New York press conference. Questioned first by television interviewer Charlie Rose and later by business reporters, Ballmer and Chambers explained how a partnership that began 10 years ago had deepened in the past three years.

Ballmer, known for his intense manner, and Chambers, more diplomatic with a soft West Virginia drawl, offered a vision that sharply contrasted with the historic and fierce rivalry between Microsoft and some other Silicon Valley companies, such as Apple, Netscape and Sun Microsystems. Allegations of anti-competitive practices have dogged Microsoft since at least 1991, ultimately leading to a federal antitrust lawsuit and settlements that required the Redmond, Wash., company to change some of its practices.

Cisco's relationship with Microsoft has never been that adversarial. On Monday, the executives said collaboration would occur whether they participate or not because the so-called Web 2.0 era makes it easier for users to share information and work together.

Moreover, customers are demanding such cooperation because they expect technology to become more user-friendly, Ballmer and Chambers said. Rather than choosing one company's line of products, they explained, business customers are asking for "interoperability" on a range of products from the companies. Business clients, Ballmer said, are still "glad for the competition," but also saying, "tell me how you are going to work with Cisco."

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