Cisco, Microsoft vow to make products compatible

By Ritsuko Ando

NEW YORK (Reuters) - The top executives of Cisco Systems Inc. (CSCO.O) and Microsoft Corp. (MSFT.O) said on Monday that they would ensure their products work together, seeking to prevent customers from delaying buying decisions.

While Cisco and Microsoft are the undisputed leaders in their respective fields of network equipment and software, they are competing to deliver a single, "unified communications" system that ties together e-mail, phones and other tools over Internet networks.

In their first joint public discussion, Cisco Chief Executive John Chambers and Microsoft Chief Executive Steve Ballmer said they would compete in some areas, but also meet demands from customers who want to pick and choose from both.

"They're saying, 'Give me the choice. Don't give me the all or nothing choice,"' Ballmer said, adding that he sought "respectful competition" with Cisco.

"There are plenty of competitors that you just don't talk to, or things get acrimonious," he said. "That's not where we want to go with Cisco."

Chambers said he and Ballmer would visit customers together later in the day, and they would try to clarify how the two companies would compete and work together simultaneously.

"Even where we're going to compete, what the customer wants to know is, 'Tell me how to interoperate. Don't make me throw away one relationship because of the other,"' Chambers said.

The comments came as both companies introduced new products and formed alliances that point to a growing rivalry.