Cisco has updated its core software license, the Enterprise Agreement, to version 3.0 and claims that it is now more flexible because even if you have to commit to a certain level of spending up front, your payments can be transferred between products, or even spent on services.
The new agreement divides Cisco’s software products into five “portfolios”: network infrastructure, application infrastructure, collaboration, security and services. Hardware isn’t included – you can acquire it separately, then purchase a corporate contract for the code that brings the cases to life.
A single Enterprise Agreement (EA) can cover all five portfolios, with a floor price of $ 100,000 applying at all levels. Any EA must also include what Cisco calls “full engagement” for a product in the portfolio.
To figure this out, imagine a Nexus switch user signing an EA for $ 100,000 per year with Cisco and fully committing to DNA for the switch. According to Cisco Enterprise Agreement 3.0 Program Guide [PDF] which costs $ 50,000. The remaining $ 50.00 in the EA can then be spent on other products in the wallets or for Cisco services.
It is also possible to move a Full Commit. If our hypothetical Nexus store were to switch to Cloudy Meraki switches, they could also move their full engagement and not pay extra. This is the only such exchange, so far, but Cisco said The register more exchanges are to come.
Customers can use an EA to buy from multiple wallets. That doesn’t mean having to work with just one Cisco partner: the company told us they know buyers like to work with specialist service providers. So the new EA can cover all the products you want, but you can choose a network specialist for networking and a collaboration specialist for your collaboration software.
The new EA retains a feature from its predecessor called “True Forward” that allows Cisco to notify you if your consumption exceeds your EA value and allows you to change the value of the agreement in the next quarter or quarter. Next year. Switchzilla thinks this is a better deal than being hit with a bill for overuse.
Cisco plans to evolve the new EA with monthly changes and updates, which will be welcome as, at the time of writing, only the Network Infrastructure portfolio allows internal validation exchanges.
Gary Wolfson, Director of Cisco’s Global Partner Software Sales Team, said The register further exchanges will be added based on customer requests and after Cisco observes how the first offer is received.
Any new swap could be more complex than changing Meraki’s DNA, as the Program Guide details many different consumption levels and states that each wallet has its own pricing system based on different metrics.
Wolfson defended this by saying that “customers have asked for more flexibility and to do that you need more variables”.
Another variable in play is to ignore the new EA and prepay for Cisco products or purchase them through a managed service provider. Wolfson said Cisco doesn’t mind you doing it, but Cisco believes the EA best meets customer needs. ®