Faster Delivery = Happy Users
Automated Process = Fewer Errors
Standards = Cost Reduction
Order Visibility = Confidence
Linking Systems = Efficiency
CIO’s and IT managers face many challenges when it comes to software licensing. And it’s no secret that this struggle results in unsatisfactory outcomes for IT operations, budget and resource management.
If you have a baseline of 1000 knowledge workers and are still buying Cisco software licenses ‘à la carte’ read on to learn how Cisco’s Enterprise Agreement (EA) will dramatically reduce your licensing and support costs.
Traditionally, an Enterprise License Agreement (ELA) was supposed to help companies simplify licensing management. But the growth of software providers created a complex web of license management. So complex that it confused even the most systematic organizations. According to this IDC study of software management, the top challenges for organizations are:
Many software vendors address these concerns by updating their license agreements. With a renewed focus on improving the customer experience across all levels of engagement. This means improved contract terms and conditions, more flexibility and advanced support services.
This new policy applies to Cisco’s software portfolio of infrastructure, collaboration, and security software — including new solutions like The Network, Intuitive, Spark, and Umbrella. Below are the main features of the new EA.
To help manage unanticipated overages, you are entitled to an extra 20% of software and services over your initial quantity without extra charges. This applies throughout the life of the EA. If you do exceed the 20% threshold allowance at any time, your usage will be evaluated by the Cisco EA team for the contract going forward.
Unlike a ‘true-up,’ True Forward was coined by Cisco. It means that during the annual reconciliation of licenses added over the past twelve months, you will never be billed for any usages or overages that have happened in the past. You only pay for the additional licenses going forward. This is applied where you have exceeded the 20% growth overage on initially selected items and for any optional, additional software available under the EA. In either case, the EA will be updated to reflect the new usage level and you will only pay for that new level going forward.
All agreements will be available for three or five years, and any mix of architectures or domains are allowed under that same contract. Any new EA will also feature not-to-exceed (NTE) pricing, a guarantee that you receive price predictability for products purchased under the EA, for the term of the EA –— regardless of software price increases over time.
Even though there is a minimum requirement, you will also get access to the Cisco Workplace Portal. This portal offers entitlement and support information for all purchased software. Also, under the EA you can get applicable network hardware with EA-covered software within that hardware provided at no cost. An EA truly allows you to bundle hardware and software together under your current EA.
One large organization needed a fully integrated, easy to use Cisco collaboration experience. Facing high maintenance and support costs in their existing telephony environment and tens of thousands of knowledge workers to please. Under an EA, they were able to take advantage of the benefits above and will save over $11M in the next five years.
Another enterprise that just hired 100 new employees at a new location needed twenty public space licenses and a couple of attendant console licenses. Purchased à la carte, it would have cost them tens of thousands of dollars in licensing and per-year support. Under the 20% growth option, they didn’t have to pay anything for the new technology being rolled out.
One large customer needed to reduce maintenance costs in their telephony environment. By migrating to an EA, they got to design a new meeting experience and estimate $11M+ in predicted savings over the next five years.
To learn more about Cisco EAs I encourage you to download and read this brochure which will tell you more about how Softchoice and Cisco work together.