Understand Cisco's Enterprise Agreement for Software

Explore the potential benefits and savings of Cisco's transformative EA.

Understand Cisco's Enterprise Agreement for Software

Before you jump into an EA, learn the pros and cons of Cisco's EA and make an informed decision.

EXECUTIVE BRIEF

Analyst Perspective

Explore the secrets of Cisco's Enterprise Agreement (EA)

Back in 2015, when Cisco created its enterprise license agreement (ELA) program and decoupled their software from the traditional model of software embedded in the hardware purchase, it became a disruptive wave among their client and partner base. It provided simplicity to Cisco software-purchasing and at the same time created a lot of confusion for customers.

While they introduced several unique features and benefits that make a compelling case for customers to seriously consider adopting the new model, most were reluctant to embrace it in the early stages. As with most big changes that are introduced to the IT industry, customers were hesitant to adopt the new subscription licensing model until they fully understood the benefits and associated costs.

Now that the program is more mature and Cisco continues to add value to the Cisco EA, it has evolved into a licensing program that organizations should give serious thought to as they review both their Cisco infrastructure and hardware replacements or upgrades.

Ted Walker
Principal Research Advisor, Vendor Management
Info-Tech Research Group

Executive Summary

Your challenge

• CIOs, IT directors, and network managers struggle to manage complex hybrid IT environments.
• You're looking for hardware and software providers with license agreements that are flexible, easy to understand, and can accommodate your needs as they change over time.
• It's always difficult to know what software you own and where it is deployed.

Common obstacles

• The problem with most software subscription licensing is that it can be complex and is typically difficult to understand and manage.
• Traditionally, an enterprise license agreement (ELA) was supposed to help companies simplify license management. But the expansion of software licensing models has created more challenges to license management.
• Understanding required support can be complex and could be an area to consider for savings.

Info-Tech's approach

• Take a holistic approach when considering a Cisco EA:
• Figure out what software and hardware you currently own.
• Understand how the ELA structure is built.
• Align your existing software and hardware to the enrollments.
• Understand the benefits of Cisco's new portal.
• Cisco's new software EA provides a complete change in the way Cisco has traditionally sold their software. For most, there are savings and benefits to be had.

Info-Tech Insight

When we look at major IT vendors, Cisco is fairly new to the enterprise software agreement arena. They have taken a novel approach to enrollment coverage and subscription license model that should produce savings over time. However, be aware that the program is still too young to prove long-term savings that Cisco positions in their ROI models.

Your Challenge

Since CIOs, IT directors, and network managers struggle to manage complex hybrid IT environments, they are looking for hardware and software providers with flexible license agreements.

1. You've bought Cisco gear for years that included a software component. Now, Cisco has decoupled the software from the hardware, and you need to figure out what software licenses are required and how many.
2. You don't really know what Cisco gear you own, what has ongoing software maintenance, and what coverage is available under your SmartNet contracts.
3. You and your team need to fully understand the Cisco One Enterprise Agreement and enrollment structure to be able to maximize any benefits and cost savings of the program.
4. You need to understand how to navigate the new software portal to manage and provision the software and determine who should have access to it.
5. You need to ask if there are really any savings by moving to a software EA and what the benefits of a software EA are over your status-quo approach.

Expected hardware and software savings over point solutions: 20%

Source: Cisco ROI Tool

Common Obstacles

Cisco's goal with its new software EA is to make the end-to-end process simpler, more efficient, and easier to manage.

• The problem with most software subscription licensing programs is that they can be complex – difficult to understand and to manage.
• Traditionally, an enterprise license agreement (ELA) was supposed to help companies simplify licensing management. But the growth of software providers has created complex challenges for license management.
• Understanding the various levels of support available can be complex and could be an area to consider for cost savings.
• Validating the potential benefits and savings of a new ELA program can be difficult when projecting the ROI.

One source projects an 85% savings in the time spent each week on mundane administrative tasks for Cisco licensing:

Info-Tech's Approach

Explore the secrets of Cisco's Enterprise SW agreement.

1. Organize your existing hardware and software positions.
2. Evaluate and understand the Cisco EA model.
3. Establish your licensing requirements.
4. Purchase and manage portal access and governance.

The Info-Tech Difference:

1. Figure out what Cisco hardware and software you own.
2. Understand the short- and long-term savings and benefits associated with the new Cisco EA subscription model.
3. Learn how the ELA is structured to align with the various Cisco product lines.
4. Leverage the Cisco Portal to securely manage, provision, and procure your Cisco software to maximize the cost savings and benefits of the Cisco EA.

Info-Tech's methodology for exploring the secrets of Cisco EA

Insight Summary

Save time and money.

The new Cisco EA has several benefits and can save you time and money, whether you are managing several enterprise Cisco agreements and maintenance contracts or just a few departmental agreements.

Understand what you own.

A better understanding of what you currently own will translate into more effective management and savings in the new EA structure.

Understand Cisco's EA.

Fully understanding how the Cisco EA works with enrollments and advanced support options will ultimately save you time in transition and in the future as you manage your EA.

Discover the savings potential.

The larger your Cisco footprint, the greater your potential savings will be with the Cisco EA.

Don't miss out.

If you delay the move to the new ELA, you could be missing out on several cost saving benefits.

Review for each enrollment.

The total cost of annual support and maintenance for software and hardware could increase in the new EA model; review and choose the required support for each enrollment.

Use the portal to save long-term.

Controlled access and policies in the portal will ensure long-term savings by reprovisioning licenses and controlling compliance.

Blueprint Deliverables

Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals.

Understand Cisco's Enterprise Agreement for Software

Cisco Inventory Workbook

A listing of your Cisco infrastructure assets and software

Key Deliverable:

Cisco Inventory Workbook

A workbook containing your Cisco infrastructure assets that are aligned to the ELA enrollment model and support choices.

Blueprint Benefits

IT benefits

• A full understanding of the licensing agreement and enrollment structure of Cisco EA.
• Potential cost savings by leveraging the enrollment programs and suites.
• Compliance with all managed Cisco software.
• Discover the advantages of a single portal to deploy and manage all Cisco software and licenses.
• Vendor compliance and corporate governance to manage all your Cisco software.

Business benefits

• Ability to expand and use additional Cisco solutions within the business.
• Flexibility to grow your deployments as required without fear of non-compliance.
• Time savings (possibly 80%) in performing mundane licensing admin tasks.
• Predictable annual pricing for all your Cisco software.
• Measurable cost savings over the term of the agreement.

Measure the value of this blueprint

Money saved

• Save what you might have spent on an oversized ELA
• Savings from choosing the right support option
• Savings over the previous CapEx model vs. the new OpEx subscription licensing model
• Overall dollars spent with Cisco
• Negotiated ELA with discounted long-term pricing

Knowledge gained

• How the Cisco ELA structure works
• How to maximize enrollment savings with suites
• Best practices in managing your Cisco software within the workspace portal
• An inventory of your Cisco assets
• How the Cisco channel works and how to benefit from it

Time saved

• Learning on your own how the Cisco EA works
• Hours spent on licensing tasks after signing the Cisco EA
• Managing your license and software deployments
• Security management and efficiencies
• Co-terminated subscriptions
• Cisco software inventory and compliance

Info-Tech Insight

The new Cisco Enterprise Agreement has several benefits and can save you time and money, whether you are managing a large enterprise Cisco infrastructure with maintenance contracts or a mid-sized organization looking to consolidate and manage your Cisco software. Success will be based on your comprehensive understanding of ELA purchasing.

Understanding Cisco's Enterprise Agreement for Software

Blueprint Objectives

• Understand the changes to Cisco's EA and the impact of Cisco moving to a subscription-software-only EA.
• Learn about how Cisco has decoupled the software from the traditional hardware purchase and how the EA is set up with enrollments to cover your different Cisco infrastructure and software requirements.
• Be able to leverage this new EA and enrollment model to license your requirements and realize the savings that are available in the new program.
• Discover how to manage this new program through Cisco's intuitive portal once you plan your agreement requirements. You will need to have corporate governance that will manage, deploy, renew, and reprovision all your Cisco software. This way, you can ensure compliance and cost savings and minimize the time spent on the day-to-day management of your Cisco software infrastructure.
• Learn how Cisco goes to market in the sales channel, with tips and tricks to help get the best deal.
• Understand what to look for in the Cisco EA. As with all new enterprise agreements, there are new terms and conditions to learn.

Explore your unrealized efficiencies

Most enterprise software agreements come with "soft" benefits that are not always measurable up front.

Info-Tech Insight

Sometimes the "soft" benefits of a software agreement are not so obvious.

For the first time in company history, Vivint Solar has true, unified communications.

Case Study

For the first time in company history, Vivint Solar has true, unified communications.

INDUSTRY: Energy & Utilities
SOURCE: Cisco

Challenges

• Had a team of 18 managing a piecemeal solution of eight vendors for their collaboration needs
• Continuous outages, performance issues, and lack of follow-through on roadmap promises
• Needed to allow all employees to work from home quickly

Solution

• Cisco Webex
• Cisco Webex Contact Center
• Cisco Webex Calling
• Webex Meetings
• Webex Teams
• Webex Room Devices

Results

• True, unified collaboration through one vendor – Cisco
• Drastically reduced headcount of infrastructure management from 18 to one
• Increased ROI by taking technologies to the cloud
• Enabled remote work for all employees

Info-Tech offers various levels of support to best suit your needs

DIY Toolkit

"Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

Guided Implementation

"Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

Workshop

"We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

Consulting

"Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

Diagnostics and consistent frameworks used throughout all four options

Guided Implementation

What does a typical GI on this topic look like?

A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

A typical GI includes 6 to 7 calls over the course of 4 to 6 weeks.

A review of then and now

Cisco EA is now a separate agreement that allows you to consolidate and purchase all your Cisco software needs.

Then

In the past, Cisco software was bundled with the hardware purchase and expired when the hardware was upgraded or replaced. It could be upgraded via support.

There were several disadvantages to this model:

• Organizations had to rebuy licenses when hardware was replaced.
• It was difficult to manage and understand what software was owned with what version.

Now

Cisco has now decoupled the software from the hardware, and it can be purchased separately in a subscription or on-premises model through a software enterprise agreement. The software is put into an EA enrollment depending on the part of your infrastructure that is being deployed. This new EA has several benefits over the legacy process.

Key components of the Cisco Enterprise Agreement include:

• A standardized three- or five-year contract for Cisco Infrastructure Software EA, security, and/or collaboration suites.
• The ability to pay upfront or spread payments out.
• A 20% growth allowance for security & collaboration enrollments.
• Annual "true forward" billing.
• Access to manage the software in the Cisco EA Workspace Portal.
• Complete, cross-organizational software coverage.
• License portability across cloud, virtual, and on-premises platforms.
• The ability to reduce complexities and minimize the time spent performing licensing-related tasks.
• Software support service (SWSS) that includes 24x7x365 TAC support, major software upgrades and updates, and license portability.

Four phases of understanding and implementing Cisco EA

1. Organize your existing hardware and software positions.
2. Evaluate and understand the Cisco EA model.
3. Establish your licensing requirements.
4. Purchase and manage portal access and governance.

Phase 1: Organize Your Existing Hardware and Software Positions

Phase 1 involves the following steps:

1.1. Find out what you own

1.2. Collect your current Cisco agreement and renewal details

1.3. Activity: Assess your current Cisco inventory

1.1 Find out what you own

Step 1.1 involves understanding your current Cisco hardware and software positions, providing reseller authorization to obtain reports, collecting ITAM inventory, finding current agreements and renewals dates, etc.

1. First, you need to gather and organize what Cisco products you have and list them in the "Worksheet" tab in the Cisco Inventory Workbook tool.
2. Collect your current agreement and renewal details.
3. As you begin to consider the move to Cisco EA, it is vital to understand what Cisco hardware you have and what software is included or embedded with it, as well as how it is being paid for.
4. You need to know what SmartNet contracts are in place, what they cover, and when they expire.
5. Some Cisco software you use could be on Software SmartNet only (such as Webex or Jabber, Server OS, and applications).

Download Info-Tech's Cisco Inventory Workbook tool