Cisco Systems Gets $150 Million Israeli Army Contract

Defense Ministry says intensive negotiations led to significant savings on five-year communications contract.

Telecommunications giant Cisco Systems has won a tender for a five-year $150 million contract to supply communications equipment to the Israeli army, the Defense Ministry announced Thursday.

The installation and maintenance phases of the project were awarded to local company Bynet.

“Cisco won the tender after receiving the highest weighted score for its technical equipment and for product prices,” the Defense Ministry said in a statement. The ministry added that the tender was awarded after intense negotiations, during which the final price tag of the equipment had been reduced by tens of percent. It said that the contract will also include an option to extend the agreement by two years.

The IDF’s communications current equipment supplier is Juniper Networks, a competitor of Cisco. Juniper will continue to support the IDF’s existing communications equipment in the future.

Reuters