2024-05-23 10:15:51 ET
Dell Technologies Inc (NYSE: DELL) is up nearly 10% on Thursday after announcing a “strategic collaboration” with Ericsson.
Details of Dell-Ericsson partnership
96% of communications service providers acknowledged the shortcomings in their network transformation strategy in a recent study.
That’s what the new partnership between Dell and Ericsson aims at addressing.
It will bring a comprehensive plan and technologies to the network operators to “accelerate their network and operation transformations” which will help materially improve the course of their businesses, as per Dennis Hoffman of .
The news arrives only a week before Dell Technologies is scheduled to publish its earnings report for the first quarter. Consensus is for it to earn $1.0 a share versus $1.09 per share a year ago.
Watch here: https://www.youtube.com/embed/4Mq7G_6nles?feature=oembedIs Dell stock worth owning in May?
The two companies will now “commercially introduce Ericsson Cloud RAN software on Dell PowerEdge servers”, the press release added on Thursday.
All in all, Dell and Ericsson have decided to work together on developing “simple and reliable Open RAN-based network cloud transformation strategies”.
Dell shares are also gaining this morning because Asiya Merchant – a Citi analyst raised her price objective on the tech stock to $170 which suggests more than 15% upside on its previous close.
We believe competitive wins in enterprises will enable bullish AI projections during the company’s earnings call and further demonstrate Dell’s fortitude in expanding its market share.
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