Cisco has agreed to purchase IBM technology over the next five years. The California company will also buy routing and switching patents from IBM.
Hubs and routers are the core business of Cisco, the top network supplier.
IBM, of Armonk, New York, said it will continue to support its products for existing customers and would still offer Systems Network Architecture, Token-Ring solutions and Ethernet adapters.
IBM's Global Services division will also develop a stronger relationship with Cisco, providing support to Cisco's corporate customers.
IBM has signed several large technology and services deals recently. In March, it signed a $16bn deal to sell storage, networking and other technology to Dell.