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Enterprise Cloud Suite- The Cisco ONE Story!- FINAL (Edited)
Cisco Confidential Page 2
As expected from you readers, that Author should go ahead and give some account of the book which now he
offers to public or a group of people.
Some of you might believe this is like a story as the title seems, No it’s not. It’s sort of a technical matter
related to Cloud, more precisely Enterprise Cloud Suite. It brings some idea of Cloud into table which we most
should be aware of as we are living in Cloud era.
Diving deep you will understand what Enterprise Cloud Suite is, and why it is important to
Organizations deploying cloud models. It further includes key comparatives of major cloud players like
Microsoft and VMware what they have under their sleeves. Cisco take on ECS, What Cisco ONE has to
offer, GTM strategy, Case studies, YoY growth analysis and many more.
This book has some of my ideas inked to this digital paper, strategies, analysis and personal collection of some
data here and there. I would guess it would make a complete handbook for one willing to deploy ECS along
with Cisco Hardware in their modern Datacenter.
I won’t write more about it, rather I give you an opportunity to delve into this piece of creation and deep dive
to get more information. Also, Do not forget to share ideas within the book as this can provide valuable
information for partners, customers who are planning to buy ECS.
So, what are you waiting for, I handover this e-book to you, Deep dive into it and get some bits and pieces
from this small source of knowledge.
Cisco Confidential Page 3
Let me start by Introducing myself, I am Farhan Mohamed, I am part of Cisco since 3
years and continuing, as Systems Engineer in Cisco-Sales Acceleration Center. I support
Central Commercial region of Americas on all the Sales related aspects, precisely Pre-sales.
I like to write as one of my favorites hobbies beside others. This time it’s a technology
which is more of a compilation than scribble of a Pen. I would feel glad if this book
makes you a marketing genius or tech savvy, it would in a small but effective way, as it’s
not sea it’s some water as a part of it.
The E-book or PDF is solely intended for Partners, PSS, AM’s, CSE all those who are involved in selling
Data-center products be it Cisco or any other Cloud related Platform. It explains Enterprise Cloud suite
which is a software package and form integral part of any organization now a days, as we move towards
Cloud. It is hard work and pure dedication to make this material look wonderful whosoever reads it.
I would like to Dedicate this book to Cisco, Sales Acceleration Center (SAC), to my team Dedicated Support,
my peer and mentor Amandeep Singh, Some of my PSS I work for. Jamie Nack and Co., Todd Kafka and Co.
and last but not the least to my Manager Zafar Khan who encourages me to do things like this, be creative
and think Out of the Box. With that being said, I welcome all avid readers to this book “Enterprise Cloud
Suite-ECS- the Cisco ONETM Story”.
“Creativity is seeing what everyone else has seen, and thinking what no one else has thought”
Table of Contents ..................................................................................................................................4
Overview on Cloud Computing ...........................................................................................................5
Enterprise Cloud Suite ..........................................................................................................................6
Major Players Strategies........................................................................................................................7
Cisco ONE Software Suite……………………………………………………………………………………………………………….9
ii) Benefits............................................................................................................................................. 11
Cisco ONE Overview............................................................................................................................13
Cisco ONE Datacenter…………………………………………………………………………………………………………...……….14
Many Problems ONE TM
Quantifying benefits of Cisco ONE software……………………………………………………………………..……………19
Cisco ONE for WAN……………………………………………………………………………………………………………………….20
Cisco ONE for Wireless………………………………………………………………………………………………………………..…23
Cisco ONE of Data Center Compute…………………………………………………………………………………………..….26
Conclusions and Recommendations…………………………………………………………………………………………..….30
Questions and Answers Panel……………………………………………………………………………………………………...…34
Cisco Confidential Page 5
HAT is Cloud?
To keep up with the fast-moving pace of business, your organization
has to become more nimble more agile. This means making it easier
to manage and deploy next-generation applications, existing
enterprise applications, and their underlying infrastructure. To mark this pace
Organizations are now dealing with Cloud Technologies. “Cloud” a five letter alphabet
isn’t as simple as it seems. Now think of Cloud in general terms, like think of human
brain, it is capable of storing valuable information which is enhanced by various sources
like books, media, and newspapers. But what if, all those sources got destroyed, what will
happen to all those valuable information. If you collected enough information from those
sources it will be there with you forever till death. But Cloud is bigger picture of a merely
capable human brain; it allows you to keep the information stored in Internet servers
instead of a physical location you have direct access to (Like Computer). Moreover you
have the access to your data from any location to any other location. It is irreplaceable,
Secured, On-Demand, Just when you need it! Now this simple looking word gave birth to
two more words where our today is moving into, any guesses? Yes, you are correct, Its
CLOUD COMPUTING also known as On-demand computing. You call it Cloud
Computing or Cloud, both make you feel you are at home, it just means the same. Major
focus of Cloud is maximizing shared resources or maximizing the effectiveness of it. It
allows the stuffs to be shared by multiple users dynamically.
You might question me here why I should go for Cloud, what benefits I get from it? The
answer is very simple if you are looking at one prime benefit, it cuts down IT COSTS.
Exciting! Isn’t it. Name a business in this world which simply runs as business without
prime goal for profits. I am sure you can’t name any. This is what Cloud brings into table.
Cloud computing has now become a highly demanded service or utility due to the
advantages of high computing power, cheap cost of services, high performance,
scalability, accessibility as well as availability. Cloud vendors are experiencing growth
rates of 50% per annum
Cisco Confidential Page 6
Today’s technology trends are transforming how our customers work. Most employees
bring some level of technology into the workplace, and many use three or more devices
to work anywhere. In the modern workplace, employees are always connected and
always moving. They have more devices with more data and they expect tools to support
ubiquitous collaboration. Here at Cisco, I see Executives, Managers, Engineers move
around with Laptops, Smartphones, tablets, with a prime goal to stay connected. What if,
you having Coffee in cafeteria and you get a call from your Boss to quickly check your
mail or login to have a quick meeting? Without mobility, you would set aside the comfort
zone or date with your favorite cappuccino and rush to your desk which you won’t like at
that moment of leisure. But thanks to Mobility, these things are taken care at our
Similarly we have another powerful platform named ECS (Enterprise Cloud suite). In
short, ECS is a simpler way to license for organizations by allowing them to license the
actual number of users instead of the number of devices, taking the headache out of
counting all the different machines a user engages with. Which means, one user many
devices. The picture below shows the situation back in 2005 was and what is the scenario
today in 2013:-
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What Microsoft did?
First and foremost, it’s a new licensing bundle of products from Microsoft. It can be hard
to understand considering it is a bundle of bundles. Moving to the cloud from a
traditional licensing plan can be confusing. I hope this brief overview gives you the
highlights of this new option. We will look at what is in the ECS Suite, how it is the
same, and how it is different than today’s enterprise desktop license model.
Here are the four components of the ECS Suite:
What are the benefits of the ECS Suite?
Simpler – One SKU is licensed by user that includes the most popular cloud
Discounting – Microsoft puts a compelling discount onto the bundle versus
purchasing the individual pieces.
Licensed by user – With the average employee using more devices for business
like tablets, mobile phones, and even home PCs, licensing by user makes sense for
Ability to decrease license count – In the crazy world of mergers and acquisitions,
it is important for some organizations to be able to decrease their licensing
headcount as their business changes. Most ECS licensed agreements are able to
have their quantity decreased “true down” on the anniversary of the agreement
down to a minimum of 250 users.
Like all Microsoft agreements, customers have the ability to add licensing at any
The Enterprise Cloud Suite (ECS), now available as part of the Enterprise Enrollment,
brings together Office 365 E3, Enterprise Mobility Suite, and Windows Software
Assurance per User. The combined power of these three offerings empowers users with
best-in-class productivity across devices while providing IT security and control.
Cisco Confidential Page 8
A Peek at VMware Cloud Strategy:-
AT A GLANCE
VMware vCloud® Suite™ is a private cloud infrastructure solution based on VMware
vSphere®.vCloud Suite allows IT to achieve cloud service provider economics in the
data center, provision applications in minutes instead of weeks, and deliver the right
availability and security for each application with policy-based governance. vCloud Suite
is the first step for IT organizations towards the software defined data center architecture.
VMware also offers additional software-defined data center products that can further
extend the capabilities of a vSphere private cloud environment.
• Operational efficiency: vCloud Suite brings together virtualized compute, with
analytics-based, simplified operations management to drive greater resource utilization
and staff productivity leading to up to 50 percent CapEx and up to 70% percent OpEx
• Infrastructure agility: vCloud Suite enables on-demand deployment of IT services in
minutes with full control over critical business and IT policies, while automatically
matching infrastructure resources to continually changing business demand and workload
• Operational control: vCloud Suite delivers the highest levels of application uptime,
through automated business continuity along with virtualization-aware security and
compliance, and enables greater control over the cost of, access to, and placement of IT
What Is VMware vCloud Suite?
vCloud Suite provides all components for building and running a private cloud
infrastructure, based on VMware vSphere, that leverages the software-defined data center
architecture. This architectural approach delivers virtualized infrastructure services
(compute, network, security and availability) with built-in intelligence to automate the on
demand provisioning, placement, configuration and control of applications based on
Cisco Confidential Page 9
vCloud Suite 5.5 is composed of the following integrated products:
• VMware vSphere®: Compute virtualization platform with policy-based automation
• VMware vCenter™ Site Recovery Manager™: Automated disaster recovery planning,
testing, and execution
• VMware vCloud Networking and Security™: Networking and security with ecosystem
integration for a virtualized compute environment.
• VMware vCloud® Automation Center™: Self-service and policy enabled cloud service
• VMware vCenter™ Operations Management Suite™: Integrated, proactive
performance, capacity, and configuration management for dynamic cloud environments.
• VMware vCloud Director®: Virtualized data centers with multitenancy and public
The following additional products further extend the capabilities of vCloud Suite:
• VMware Virtual SAN™: software-defined storage platform with breakthrough
technology that pools and automates local storage and turns it into shared storage.
• VMware NSX™: comprehensive security and network virtualization that is fully
decoupled from hardware
• VMware vCloud® Hybrid Service™: VMware’s public cloud service, based on the
software-defined data center architecture, that helps customers create hybrid clouds
• VMware vCenter™ Log Insight™: Scale-out log aggregation and analytics for virtual
• VMware IT Business Management™: IT financial management and cost
benchmarking for applications and services delivered in cloud environments.
Cisco ONE Software Suites:-
Beginning in 2015, Cisco will offer Cisco ONE Software Suites, a new way for
customers to purchase infrastructure software. Cisco ONE Software Suites offer a
simplified purchasing model, centered on common customer scenarios in the data center,
wide area network, and local access networks.
Cisco ONE Software provides a flexible way for customers to buy software for their data
centers, WANs and access networks. It improves the procurement and management of the
Cisco Confidential Page 10
network software at each phase of the product lifecycle. This model decouples the
acquisition of the software from that of the underlying hardware platforms.
Cisco ONE Software simplifies network management by enabling customers to buy all
the feature licenses in one package and then turn on what is required when needed. It
offers a greater value to customers through reduced complexity, investment protection,
ongoing innovation and flexible buying models.
Cisco ONE Software is organized into three distinct domains: Data Center, WAN and
But, what is it all about, See the picture below to understand the software.
Cisco Confidential Page 11
Cisco ONE Software Suites provide customers with four key benefits:
Software suites that address typical customer use scenarios at an attractive
Investment protection of their software purchase through license portability
Access to ongoing innovation and new technology from Cisco incorporated
into the suites
Flexible licensing models to smoothly distribute customer's software spend
With more than 20 years of technological development, Cisco software continues to
deliver tremendous customer value. For example, innovations like the Cisco Application
Centric Infrastructure provide greater programmability, ease of use, and security across
the enterprise. With Cisco ONE Software Suites, customers can now extract the value of
software in bundles that address common business challenges in three domains: WAN,
access networks, and data center / cloud networking.
Cisco ONE Software Suites focus on business outcomes aligned to common use cases.
They cut through the complexity of product-by-product software features by decoupling
the ownership of those features from the underlying hardware and operating system. This
separation means that usage rights are portable across multiple generations of hardware.
It also gives customers the ability to acquire and deploy new capabilities in a virtual
manner through an integrated licensing portal.
You get the software you need when you need it. You can change where the software
runs without licensing complications. You can also streamline procurement and
administration processes. It's possible with Cisco ONE Software Suites.
Cisco ONE Software Suites provide customers with four compelling benefits.
Cisco ONE Software Suites protect a customer's software investment through license
portability. Licenses are transferable between generations of devices, eliminating the
requirement to repurchase software when upgrading to new hardware.
Cisco Confidential Page 12
For a small fee, customers may also transfer their licenses to a higher-tier family of
products or from a physical to a virtual device. Software investments made today will last
into the future, even as technical or business requirements may change.
Less Complexity, Greater Value
Cisco ONE Software Suites are composed of software packages that address the most
common customer scenarios. At the same time, they incorporate advanced capabilities
(for example, energy management) to increase the benefit to the customer.
The goal is reduced complexity and increased value, especially in the ordering process.
Customers will no longer need to construct lengthy purchase orders to make sure all the
necessary software is included. Cisco ONE Software Suites collapse these software items
into a single line item, simplifying the process and reducing the risk of accidentally
excluding a necessary software component.
Access to Ongoing Innovation
Traditionally, when Cisco released new products, either through in-house development or
an acquisition, customers needed to purchase these products separately. With Cisco ONE
Software Suites, and an associated software maintenance contract, customers are entitled
to ongoing software updates and upgrades within the suite.
If those features will not run on existing but outdated devices, then software portability
provides the ability to transfer that software to the latest models. Additionally, as Cisco
incorporates new products and features into Cisco ONE Software Suites, customers will
be entitled to those latest capabilities immediately. Cisco's intent is to add capabilities
into the software suites on an ongoing basis.
Flexible Licensing Models
Cisco ONE provides customers with new subscriptions, enterprise agreements, and other
options to license and consume their software. With a subscription license, customers can
pay a fixed annual rate for their software licenses, upgrades, portability, and technical
support. Customers can thus count on predictable technology expenses.
Enterprise license agreements offer even greater discounts to customers willing to
commit to a higher level of expenditures on Cisco ONE Software Suites, along with
standalone collaboration and security packages. Customers designate a total expenditure
commitment and have the ability to distribute this amount over time.
Cisco ONE Enterprise Cloud Suite helps you do that by providing the automation,
visibility, and control you need to improve agility.
Cisco Confidential Page 13
With Cisco ONE Enterprise Cloud Suite, you adopt automation at a comfortable pace for
your organization. It supports your map to cloud. Whether you are just beginning with
infrastructure automation, are ready to branch to a hybrid cloud, or have a different goal,
Cisco ONE Enterprise Cloud Suite can keep things moving smoothly toward your vision.
Making Software Buying Simple
Cisco ONE Software is a valuable and flexible way to buy software for your data center,
WAN, and access domains. At each stage in the product lifecycle, Cisco ONE Software
helps make buying, managing, and upgrading your network and infrastructure software
When you buy: Instead of choosing from hundreds of separately priced software
features, you purchase a single Cisco ONE Software product. Instead of a single
Cisco Confidential Page 14
perpetual license tied to the lifetime of your hardware, we offer flexibility with a choice
of licensing options.
When you use: Your Cisco ONE Software investment can grow in value through
ongoing innovation, updates, and upgrades. And coming soon with Cisco ONE Software,
you’ll have the freedom to deploy your licenses on physical or virtual machines.
When you refresh: You benefit from lower costs and lower TCO. Cisco ONE Software
licenses are not tied to specific hardware, so they are portable to the next generation of
Cisco ONE Software Helps Solve Your Most Important IT Problems
Connect branch and campus environments with scalable wired and wireless
Create a highly secure data center network that works with public, private, or
Deliver voice and video collaboration throughout your network.
Cisco Confidential Page 15
Features and Capabilities
Cisco ONE for Data Center can help you build a scalable, resilient, and efficient data
center. Move workloads and resources between different cloud models, quickly, more
securely, and in compliance with your policies. Reduce costs and increase IT agility with
highly secure private, public, and hybrid clouds for your physical and virtual
Cisco ONE Foundation for Data Center Networking
Improve visibility and consistency across physical and virtual networks
Deliver global reach across your businesses and data centers
Simplify management through automation and orchestration
Add performance and port density with greater fault tolerance
Increase operational efficiency with intelligent power management
Cisco ONE Data Center Fabric helps you create a scalable, intelligent network
by converging your LANs and SANs.
Cisco ONE Foundation for Compute helps you:
Increase security in your virtual environments
Automate the provisioning of virtual private data centers
Use programmable application containers for your converged data center
Manage multiple Cisco UCS domains from a single pane of glass
Reduce the energy use of all your connected devices
Cisco ONE Enterprise Cloud Suite delivers the tools for creating, monitoring, self-
service ordering, and lifecycle management of your private cloud. It provides unified
provisioning and management of both Cisco and multi-vendor hardware.
Both Cisco ONE Foundation for Compute and Cisco ONE Enterprise Cloud include
Cisco Intercloud Fabric, which lets you take advantage of the benefits of a hybrid cloud.
It extends your data center or private cloud to the public cloud, giving you the ability to
move workloads with full security and control for greater business agility and flexibility.
Cisco Confidential Page 16
Services for Cisco ONE Software
Cisco Software Support Service (SWSS) offers license portability and continuous
enhancements for your Cisco ONE Software. SWSS also gives you full-time phone and
remote technical and maintenance support services 24 hours a day, 365 days per year.
Additional hardware and consulting services are available from Cisco and our partners.
We Make Buying Cisco ONE Software Easier
With Cisco ONE Software, we’ve made software buying, tracking, and maintenance
easier so you can focus on your business. For more information or to purchase Cisco
ONE Software for data center, WAN, and access domains, contact your Cisco
representative or an authorized Cisco partner.
Exhibit 1 presents the results for the different scenarios.
In every case, the Cisco ONE Software model realizes a double-digit savings over the traditional à la
carte model—from 10.15% to 55.50%. Cisco ONE Software has been able to deliver that savings due to
“better together” pricing, access to ongoing innovation and software license portability. It is the right
purchasing model for today’s digital era because it helps customers better manage their network. Cisco
ONE Software enables businesses to purchase the software capabilities necessary to address their needs
today and offers them investment protection in the future.
Cisco Confidential Page 17
Introduction: It’s Time for a New Network Software Model
Today, the networking industry finds itself in the midst of a major revolution. The digital business era is
being driven by several megatrends including mobility, cloud computing and the Internet of Things
(IoT). These trends shift IT from being compute centric to being network centric (Exhibit 2), which
increases the value of the network.
In fact, the network will ultimately determine the success or failure of these network-centric
transformations. For example, businesses will spend more than $50 billion on cloud services in 2015,
according to the ZK Research 2015 Global Cloud Forecast, but the network almost exclusively
determines the performance of cloud-based applications. The network should now be considered a
strategic business enabler rather than a tactical, best-effort resource.
Businesses will spend more than
$50 billion on cloud services in 2015,
According to the ZK Research 2015
Global Cloud Forecast, but the network
Almost exclusively determines the
Performance of cloud-based
Applications. The network should now
be considered a strategic business
enabler rather than a tactical, besteffort
Cisco Confidential Page 18
As today’s networks have grown in importance, they have had to take on an increased level of
functionality. This has driven up the complexity of buying, deploying and managing the software needed
to run a network. The digital era requires the network to become a dynamic, agile resource. The process
of managing network software is plagued with the following issues:
Complexity of ordering and managing licenses: IT organizations buy, manage and upgrade hundreds
or even thousands of separate software licenses. This makes ongoing management extremely
challenging. Also, the wide variety of network software features are typically sold à la carte, meaning
customers must determine the right set of features for every point in the network. This can lead to
inconsistent features across the network, which can be particularly problematic when implementing
features network-wide to optimize application traffic or secure the network.
Lack of software agility: Typically, each network device has its own software license, meaning the
software is tied to the hardware and is not portable. Because of this, when the hardware is upgraded, a
new software stack is purchased. Historically, most organizations ZK Research interviewed regarding
this issue chose to delay upgrades—but they expressed concern that doing so could cause businesses to
miss out on new opportunities in this digital era, in which speed and agility create competitive
Lumpy IT spending patterns: The periodic refresh of network infrastructure leads to spikes in capital
expenditures. This makes IT budgets difficult for the business to plan, as network spending is highly
inconsistent. A new software model for the network is required if organizations are to become agile
entities, capitalize on digital transformation and leapfrog the competition.
Cisco ONE Software provides solutions to the most relevant use cases such as unified
access, intelligent WAN and next-generation branches. Cisco ONE’s Software Support
Service gives customers benefits such as access to software upgrades, new features and
capabilities, and license portability. With license portability, customers can refresh their
network hardware and port Cisco ONE Software to the new hardware without having to
purchase the same software licenses again. Details of Cisco ONE Software for the
different domains can be found at www.cisco.com/go/one.
Cisco Confidential Page 19
Quantifying the Benefits of Cisco ONE
This section focuses on quantifying the cost/ROI1 of Cisco ONE Software using some
comparing traditional software models and Cisco ONE Software for wireless access,
WAN and the data center. We use the following costs/returns in our models:
Up-front cost of acquisition
Ongoing technical support service
Ongoing acquisition of new capabilities
Device refresh costs
Savings from the key underlying technology
Also, list prices were used to calculate the TCO comparisons.
For the WAN, this e-book compares the cost of an àla carte purchase of 50 Cisco ISR
4451 routers with AX bundle versus the same purchase of 50 routers made with Cisco
ONE Software. Exhibit 4A shows the details of the 50-site WAN purchase and features
included with a traditional purchasing model (AX bundle) compared to Cisco ONE. The
exhibit shows that the Cisco ONE Software model provides more value by offering a
comprehensive set of features for the branch WAN.
Cisco Confidential Page 20
As examples, Prime and vNAM provide network lifecycle management, service
assurance, visibility and analytics. Energy Wise helps reduce the energy costs of
connected devices, and vWAAS optimizes WAN bandwidth for virtualized
environments. When purchased à la carte, all these features would cost more.
Typically, most customers refresh their WAN infrastructure on a five-year cycle. The
price comparison has been extended through one full replacement cycle to compare the
year-over-year TCO. The model also assumes a scenario where the organization adds a
new WAN feature or application in Years 1, 3 and 5. One example of a new feature is the
Intelligent WAN (IWAN) Application for the Application Policy Infrastructure
Controller – Enterprise Module (APIC-EM). The average cost of new WAN features is
$600 per device or $30,000 for all 50 devices, so this price was carried through the
model. Exhibit 4B shows the detailed TCO comparison.
Cisco ONE Software gives customers access
to ongoing innovation such as the IWAN
App, part of Foundation for WAN, that
automates IWAN deployment.
Cisco Confidential Page 21
Cisco’s Intelligent WAN (IWAN)
Cisco’s IWAN provides significant cost savings and should be at the top of every IT and business
leader’s priority list. For example, consider a business with 50 WAN branch locations, each with dual
MPLS circuits. Based on ZK Research’s 2015 WAN Survey, the average cost of an MPLS WAN
connection is $975 per location, whereas the average cost of a business-class Internet connection is
$485. If the customer chose to use a consumer-grade broadband service, the price of Internet
connectivity would fall to less than $100 per month.
Using the business-class pricing, Exhibit 4C shows the savings gained by evolving to IWAN, where one
MPLS connection would be deployed for mission-critical traffic and the second replaced with an Internet
connection for best-effort traffic. The exhibit shows the difference between a configuration for dual
MPLS connections for all 50 branches compared to a configuration that has 25 branches with dual
Internet connections and 25 with one Internet and one MPLS connection. The savings from moving to a
hybrid WAN enabled by IWAN is $8,820 per month. This would be even higher if the business used an
Cisco Confidential Page 22
In Year 0, Cisco ONE Software is at a slight premium, but in every subsequent year, it
provides a savings to the customer. The cumulative spend over the six years (Year 0 plus
five years) for Cisco ONE Software is $2,815,000—a 10.15% savings over the
$3,100,700 for the à la carte purchasing method. License portability lowers the cost of
refresh because the same Cisco ONE licenses can be ported over to the new hardware,
thus realizing the savings in Year 5.
As the sidebar discussion on the previous page shows, Cisco ONE also provides a more
financially efficient path to Cisco’s Intelligent WAN, which enables businesses to shift to
an Internet or hybrid WAN architecture. Because the software needed to make the
transition to IWAN is included, organizations can move to this next-generation WAN
model as aggressively as necessary without the financial concerns that may arise with
traditional software models.
Looking Ahead at the Future of the WAN
The WAN is constantly evolving, and businesses need the ability to quickly add new
features to optimize and secure the environment as things change. The Cisco ONE
Software model supports the WAN solution journey without the customer having to incur
significant upgrade costs in the future (Exhibit 4D).
Cisco Confidential Page 23
This scenario profiles the deployment of a Cisco wireless access network using a Cisco
8500 Wireless Controller for 1,000 access points (APs) with traditional à la carte pricing
and Cisco ONE Software over a four-year refresh cycle with a five-year TCO
Exhibit 5A shows the initial acquisition cost for the wireless deployment using à la carte
pricing and Cisco ONE Software. At acquisition time, the Cisco ONE price is higher than
the à la carte price, but Cisco ONE comes with many additional features not found in the
traditional purchasing model. The Prime Infrastructure Device License and Cisco Identity
Services Engine (ISE) can help organizations better manage, optimize and secure the
wireless network. These alone can add tens of thousands of dollars to the cost if
purchased independently. Mobility Services Engine Base offers location tracking for
wireless devices. In sum, Cisco ONE Foundation for Wireless has the features to connect,
secure and manage a business-class Wi-Fi network.
The average upgrade time for wireless infrastructure is typically four years. Because of
this, the TCO study was done over a five-year time frame (Years 0 through 4), with the
equipment refreshed at the four year mark.
Cisco Confidential Page 24
Exhibit 5B shows the year-over-year comparison of an à la carte purchasing model
compared to Cisco ONE Software.
Cisco Confidential Page 25
The model shows that the price for Cisco ONE Software is at a slight premium to à la
carte purchasing at the time of initial acquisition, and then the cost is similar each year
until the upgrade cycle. At Year 4, when new hardware and software is required, Cisco
ONE provides a significant price benefit and smoother IT spends because of license
portability. The five-year cumulative TCO is shown in Exhibit 5C below. Cisco ONE’s
TCO is $501,285, which is a 25.3% savings on the $671,035 cost of à la carte pricing.
Looking Ahead at the Future of Mobility
Mobile solutions continue to evolve, and businesses need the ability to quickly add new
features to enable a richer mobile experience. The Cisco ONE Software model supports
the mobile solution journey without the customer having to incur significant upgrade
costs in the future (Exhibit 5D).
Cisco Confidential Page 26
For the data center, this paper compares the traditional à la carte pricing model with that
of the Cisco ONE Enterprise Cloud Suite (ECS). Exhibit 6A shows the configuration and
initial pricing for 30 Unified Computing System (UCS) servers. For ECS, the Cisco ONE
pricing configuration provides a hefty 47% savings at time of acquisition and includes
several additional features, such as Cisco Energy Wise to reduce energy use of connected
servers, Virtual Application Container Services for virtual services and workflow
automation, and UCS Performance Manager, which will provide even more savings. In
essence, Cisco ONE Enterprise Cloud Suite provides all the features necessary for a
hybrid-ready private cloud.
Cisco Confidential Page 27
Exhibit 6B compares the year-over-year price of the two pricing models for a four-year
period (Years 0 through 3). The model assumes that at Years 1 and 3, the business
chooses to add new features at an average cost of $3,200 each for the 30 licenses, for a
total of $96,000 in each of the years. Each time services are added, the support costs
increase for the à la carte model.
As stated earlier, the initial acquisition price of ECS using Cisco ONE is $198,390, which
is significantly less than the $377,640 for à la carte pricing. Over the four-year period, the
TCO advantage for Cisco ONE increases. At Year 3, the cumulative total for Cisco ONE
is $366,060, which is 55.5% less than the traditional pricing model of $822,600 (Exhibit
Cisco Confidential Page 29
Looking Ahead to the Future of the Cloud
The cloud is one of the fastest evolving areas in IT today, and businesses need the ability
to quickly adapt to the changing environment. The Cisco ONE Software model supports
the cloud journey without the customer having to incur significant upgrade costs in the
future (Exhibit 6D).
Exhibit 7 provides a summary of all the TCO models discussed in this paper. Cisco ONE
Software clearly has a better ROI due to the following capabilities:
Simplicity: It offers a suite of software features that are simple to purchase and are
designed to tackle the most relevant use cases in Data Center, WAN and Access. The
foundation provides a consistent set of functionality across the network.
License portability: It lowers the network refresh costs by making the software portable
to the new hardware.
Access to ongoing innovation: It offers access to software upgrades and new software
features that support the customer’s journey in Data Center, WAN and Access.
Cisco Confidential Page 30
Aligned with business: It provides a more predictable IT spend through license portability
and a subscription buying model, and it makes the network a strategic asset for business
growth and innovation.
The digital business era is here, putting a premium on business agility. However,
businesses are only as agile as their IT infrastructure—and historically; the network has
been static and rigid and has caused organizations to miss out on new opportunities.
What’s required is a new network software model that can better address what businesses
Cisco ONE Software helps customers better manage their network by enabling
businesses to purchase the right software capabilities to address their needs today while
offering investment protection in the future.
The migration to a new network software model should be at the top of every business
and IT leader’s priority list:-
Consequently, I as System’s Engineer would make following recommendations:-
Consider the network a strategic asset. IT is shifting to a network-centric model, and
the network will ultimately determine the success or failure of initiatives such as cloud
computing, mobility and IoT. The network should be thought of as a strategic platform
that can be the foundation for competitive advantage.
Cisco Confidential Page 31
Minimize the number of vendors in the network. Network complexity is at an all-time
high, much of it driven by trying to get point product vendors to interoperate with one
another. Businesses should shift to a deployment strategy in which the number of vendors
is minimized to improve performance and simplify management.
Customers should consider Cisco ONE software. As demonstrated throughout this E-
book, Cisco ONE provides both cost and innovation advantages over traditional
purchasing models. We believe Cisco ONE Software to be the right network purchasing
model for the digital business era.
Cisco Confidential Page 32
Cisco Debuts Software Licensing Bundles, Which It Plans To Sell As Subscriptions
By Kevin McLaughlin and Mark Haranas on January 28, 2015, 4:50 pm EST
Cisco Systems unveiled its Cisco ONE software licensing program Wednesday, which
lets customers buy the vendor's latest and greatest software features and functionality in a
way they haven't previously been able to do.
Cisco ONE is rolling out three software license bundles that cover its data center, WAN
and network access software. And later this year, Cisco will let customers buy these
bundles as a subscription for the first time. Customers can also buy them as perpetual
licenses or in enterprise agreements if they prefer.
The Cisco ONE software bundles -- which include hundreds of features that used to be
priced and sold separately -- all run on Cisco's networking and UCS server hardware. The
data center and WAN-focused bundles include ties with Cisco's Application Centric
Infrastructure (ACI) and Intercloud offerings, while the access bundle does not.
The goal of the bundles is to group software into solutions aimed at specific business use
cases, Bruce Klein, senior vice president of Cisco's Worldwide Partner Organization, said
in a blog post Wednesday timed to coincide with its Cisco Live conference in Milan,
"We have taken literally hundreds of disparate SKUs and condensed that down into a
very simple solutions-oriented approach," Klein said in the blog post.
[Related: Cisco Beefs Up Meraki with New Cloud-Based Management, Now Pitching It to
Cisco's software licenses are now portable, which is a big change from the past when
customers that upgraded their hardware also had to buy new software. Now, customers
can move their existing software licenses to new hardware when they upgrade, saving
money in the process.
Cisco Confidential Page 33
Customers can continue buying Cisco software a la carte, but Cisco says the bundles are
the best way to take full advantage of advancements in its server, networking and cloud
Marc Duvoisin, vice president of the Software Services Organization at Dimension Data
Americas, said grouping software into bundles is an important move that will make it
easier for customers to buy Cisco software.
"Cisco ONE is a big step in the direction of uncoupling software from hardware assets in
the networking infrastructure," Duvoisin told CRN in a recent interview. "As they add
new functions, Cisco ONE customers will get them for free and other customers will
have to pay more to get them."
Cisco isn't talking yet about how much the Cisco ONE bundles will cost, but they'll be
sold by Cisco's sales force as well as by its channel partners.
Cisco partners will see deal sizes that are 10 percent to 20 percent larger when selling the
Cisco ONE bundles, Klein said in the blog post. The subscription option will also get
partners familiar with recurring revenue and the predictability that this model brings, he
Cisco, San Jose, Calif., is focusing more on software and developer outreach because
these are crucial to its plans for ACI and Intercloud, according to partners. Cisco first
started talking about its shift to the Cisco ONE subscription model last March.
While Cisco is known as a networking hardware vendor, it's already got lots of
momentum on the software side. Cisco is currently the world's fifth-largest software
vendor in terms of revenue, and the third largest SaaS vendor, John Brigden, senior vice
president of software strategy and operations at Cisco, said in a blog post Wednesday.
"Our software business is growing fast. As we deliver more capabilities, software
becomes a critical component that pulls our systems and architectures together into
solutions for our customers," Brigden said in the blog post.
Cisco is realizing that to be the most effective provider of technology, its software needs
to be customized and integrated, Brian Ortbals, director of advanced technology at World
Wide Technology, a St. Louis-based Cisco partner, told CRN.
"A box that stands alone doesn't do nearly as much for a business and workflow as one
that can be tailored," Ortbals said.
Cisco Confidential Page 34
Software development is also becoming a bigger part of WWT's strategy, according to
Ortbals. "We're investing heavily in software development to more effectively embed
things like ACI, automation and orchestration," he told CRN.
PUBLISHED JAN. 28, 2015
Ordering Cisco ONE Data Center for Compute:-
The Cisco ONE Data Center for Compute offer consists of two bundles with the components listed in
Table 3 in each bundle.
Cisco ONE Foundation for Compute is a prerequisite for ordering Cisco ONE Enterprise Cloud Suite;
therefore, these products are included.
The Cisco ONE Foundation for Compute bundle is for computing (physical and virtualized)
management only. (network and storage capabilities are not included). Licenses are per server unless
Cisco Confidential Page 35
The following are the high level steps for ordering Cisco ONE Foundation for Compute and, optionally,
Enterprise Cloud Suite.
1. Select C1-UCS-M in Cisco Commerce Workspace.
2. Select options to configure.
3. Under C1N1PUCSK9=, click Select Options.
4. For Cisco ONE Foundation for Compute, select the quantity tier part number.*
5. If Enterprise Cloud Suite is needed, then also select the quantity tier part number for Enterprise
Cloud Suite. The quantities for Foundation for Compute and Enterprise Cloud Suite must be the same.
6. Change the service duration if necessary. The default duration is 12 months.
7. Add the cisco UCS Director Base license (CUIC-SVR-OFFERS= > CUIC-BASE-K9 & CUIC-
TERM, Qty 1). This license is required if the customer does not already have it.
Four pricing tiers are available based on the number of server licenses to be ordered: 1 to 9, 10 to 49,
50 to 99, or 100 or more.
Cisco Confidential Page 36
Q. What is Cisco ONE ™
A. Cisco ONE Software is a new portfolio of software products that span the technology categories of
data center and cloud, WAN, access, and security. Cisco ONE Software simplifies the way you purchase
software licenses within these technology platforms.
Q. Why is Cisco announcing Cisco ONE Software?
A. Based on feedback from our customers and partners, Cisco is undergoing a transition. Instead of
selling point software products and features, we will be selling software solutions that address the most
relevant IT and business outcomes. We’ve designed these solutions to meet your needs for infrastructure
software that delivers the same ongoing benefits as you have with modern application software. With
our easy-to-consume, solution-oriented suites, Cisco ONE Software simplifies the buying process for
customers who need to deliver a specific business outcome. Cisco ONE Software also provides access to
ongoing innovation and software license portability, similar to the benefits offered by modern
Q. What are the financial benefits to buying Cisco ONE Software?
A. Cisco ONE Software provides several financial advantages over the current licensing model:
● Licenses are portable between generations of hardware, eliminating the need to repurchase software
when upgrading to new hardware.
● Costs can be amortized over the lifetime of the software, and paid from the more flexible OpEx
instead of the more strictly controlled CapEx budget.
● “Better together” pricing can provide lower initial costs and reduce your total cost of ownership
(TCO) over the software lifecycle. In a typical unified access refresh use case, you could save 9% in
software costs over a 5-year refresh lifecycle with Cisco ONE Software.
Cisco Confidential Page 37
Q. What are the operational benefits of buying Cisco ONE Software?
A. Cisco ONE Software addresses many of the common headaches associated with purchasing and
● Today, you may have to choose from hundreds of SKUs to find the right software solution for your
needs. Cisco ONE Software suites simplify that process into a 3x3 decision matrix:
◦ Determine which architecture model is needed: data center and cloud, WAN, or access model.
◦ Determine which tiered capabilities are required: Foundation, Advanced Applications, or Advanced
Security, or a combination.
● Software licenses can be transferred across generations of hardware without requiring repurchase of
● Licenses are self-managed through a customer-accessible licensing portal.
● Metering capabilities allow customers to easily see which licenses are in use and in which locations.
Q. Will Cisco ONE Software run on third-party hardware?
A. Cisco ONE Software contains some elements that run on purpose-built Cisco hardware, and some
elements that are packaged to run on industry-standard x86 hardware as virtual appliances. The software
elements packaged to run as virtual appliances can be run on any industry-standard x86 hardware that
meets the requirements for the software.
Q. Can you describe the before and after scenario for Cisco ONE Software from financial and
A. An example would be a unified access use case where a customer has 500 branches and a 5-year
refresh cycle. Under the current a la carte model, the cost for annual hardware and software support, plus
the cost for refreshing all branch hardware in the fifth year, would total approximately US$16 million.
With the Cisco ONE Software model, costs over the same period would be US$14.5 million, for a
savings of 9%.
Customers will receive other significant benefits in this example:
● Lower first-year start-up costs if the customer buys a subscription model
● Cost savings in the fifth year as a result of license portability
● Greater value because the product includes advanced capabilities that would cost more if licensed in
the existing a la carte model
Q. Each domain in the Cisco ONE Software model offers a Foundation product. What is Foundation
and is it the same for all products?
A. Foundation products are a collection of the most common software-licensed capabilities for each
area of the network: data center and cloud, WAN, and access. Capabilities will differ depending on
which area of the network is being addressed. In general, Foundation products deliver the capabilities
that most customers need, including basic networking, security, and systems management.
Q. Does the Foundation product include Cisco IOS ®
Software, Cisco ®
NX-OS Software, or other
Cisco operating systems?
Cisco Confidential Page 38
A. No, the basic operating system for any purchased device is included with the cost of the hardware.
Cisco ONE Software includes additional software licenses and capabilities that extend beyond what
comes with the basic operating system.
Q. Why are there separate Advanced Security products? Does that mean that Foundation products and
other products are not secure?
A. All Cisco ONE Software products offer integrated security at every layer. Advanced Security
products provide more capabilities and typically run on standalone appliances, like Cisco Adaptive
Security Appliances (ASA) or Cisco Firepower ™
devices. Customers should purchase Advanced
Security products if they need this advanced functionality.
Q. Each domain in the Cisco ONE Software model offers an Advanced Applications product. What is
an Advanced Applications product, and are they the same for all domains?
A. Advanced Applications for Cisco ONE Software address a broader range of customer use cases and
differ by architecture. For example, the ability to deploy advanced voice and video solutions is enabled
by the Cisco ONE WAN Collaboration product. Cisco ONE Advanced Mobility Services allows
customers to customize their wireless environment to deliver a tailored experience, which is a valuable
benefit for retail and branch offices.
Q. Will customers be required to buy all their Cisco software in this new model instead of being able to
purchase software features a la carte?
A. Cisco continues to offer you two ways to buy Cisco software. You can still purchase Cisco software
features the way you always have, by purchasing hardware and then buying selected software
capabilities to build a custom package. Cisco ONE Software offers a new consumption option that lets
you buy a hardware platform and license the software separately. Cisco ONE Software products provide
combinations of applications and features that address the most common business use cases at attractive
prices. These give you improved deployment flexibility and portability to better support your business
Q. What if Cisco ONE Software requires me to purchase more than I need? I may prefer buying my
software a la carte. How do you respond to this concern?
A. You will still have the option to buy software a la carte. Cisco ONE Software is in addition to, rather
than a replacement for the current model.
Q. Do I have to buy a Foundation product to purchase Advanced Applications or Advanced Security
A. It depends.
● All of the software in our Advanced Security products run on appliances and have no dependencies on
the Foundation product. You can purchase them separately as long as you have the appropriate appliance
as described above.
● The Cisco ONE WAN Collaboration product is available separately if your primary use case for the
router is unified communications.
Cisco Confidential Page 39
● All other products require purchase of Foundation prior to the purchase of the Advanced product
Since you gain additional benefits by purchasing the Foundation and Advanced product types, we
recommend that you purchase them together.
Q. What is the difference between Cisco ONE Software perpetual and subscription licensing?
A. In the subscription model, you pay an annual fee that includes the cost of the license(s) term right-
to-use (for a term of one year) and the cost of SWSS for software support, suite updates, version
upgrades, and license portability. If you decide to cancel the subscription, you lose the right to use the
In the perpetual model, you pay the entire cost of the license(s) for perpetual right-to-use at the time of
purchase. You must maintain an annual SWSS contract to receive software support, updates, upgrades,
and license portability rights. If you stop paying for the SWSS contract, you can continue to use the
license on that device. However, you will not be eligible for support, updates, upgrades, or license
portability if you move to a new device in the future.
Q. Do I have to prepay for the full term of my Cisco ONE Software subscriptions?
A. Cisco ONE Software is offered in a one-year minimum term, and we offer an option to prepay for
one or more years of subscriptions. During 2015, we plan to introduce annual payments for
Q. How do I migrate equipment and software I already own to the new Cisco ONE Software licensing
A. Cisco will offer prorated upgrade costs to customers who own qualifying products and want to move
to the Cisco ONE Software model. These will be managed as promotional campaigns to accelerate your
migration to Cisco ONE Software.
Q. Are there any tax benefits associated with purchasing through the Cisco ONE Software model?
A. Tax laws vary by jurisdiction and the individual circumstances of the transaction or offer. Some
jurisdictions do not assess sales tax on intangible property like software. However, the determination of
whether software qualifies for an exemption depends on multiple factors. Cisco does not provide tax
advice to customers, partners or third parties. If you are unsure whether software (Cisco ONE Software
or other) comes under a tax benefit in your jurisdiction, you should consult with your tax advisor.
Q. In the past, other vendors have moved functionality from basic to advanced tiers. This requires the
purchase of the more expensive tier just to get that functionality back. Can you assure me that Cisco
won’t do the same thing?
A. While we reserve the right to change the contents of Cisco ONE Software packages, our customers’
satisfaction is our most important consideration. Our plan is to continue to add functionality to the
Foundation and Advanced tiers. Over time, some functionality may become end-of-life or superseded by
new capabilities. In these cases, if you have purchased a Cisco ONE Software perpetual license, you can
continue to use your licenses even if the contents of a particular tier changes. Cisco will continue to
provide support based on our standard support lifecycle policies.
Cisco Confidential Page 40
License Portability Questions:-
Q. What is license portability?
A. License portability is a key benefit of Cisco ONE Software through Cisco Software Support Service
(SWSS). Previously, software application licenses were node-locked to a specific device. Now, when you
need to move to a different device, license portability entitles you to move your software licenses to that
new device. This allows you to continue using your existing investment in Cisco software and may
eliminate the need to repurchase licenses when doing a hardware refresh. Depending on the feature sets
you use, license portability can lead to significant savings.
Q. How do I get license portability?
A. First, you must have purchased your licenses through the Cisco ONE Software licensing model.
Licenses purchased outside of Cisco ONE Software are not eligible for license portability.
Second, you must have maintained an active Cisco Software Support Services (SWSS) contract from the
initial date of purchase, or reinstate support through Cisco’s standard support reinstatement policy.
Q. I currently have Cisco Smart Net Total Care but not Cisco SWSS. Am I eligible for license portability?
A. Cisco Smart Net Total Care provides support for hardware and the platform/OS software. It offers
many business critical services like advance hardware replacement. However, Cisco Smart Net Total Care
does not provide software license portability for Cisco ONE Software.
To take advantage of license portability, you must have a current Cisco SWSS agreement in place. Cisco
SWSS provides the benefits of license portability, software technical support, continuous innovation,
updates, and upgrades as well as future software enhancements to Cisco ONE Software products. Cisco
SWSS delivers software support in a single offering, making it simple for you to purchase, manage, and
Q. I had a Cisco SWSS contract in the past. Can I reinstate it?
A. If you want to reinstate your software maintenance agreement, then the standard Cisco Application
Software Support Contract Reinstatement Policy applies. The reinstatement policy is included in the
Software Transfer Relicensing Policy document on Cisco.com. Cisco ONE Software does not have a
separate reinstatement policy.
Q. How do these policies apply if I have a subscription agreement? Do I need Cisco SWSS with a
A. Subscription contracts include the equivalent coverage of Cisco SWSS (technical support and
upgrades rights) along with the term-based right-to-use license for Cisco ONE Software products and
portability rights. These are available at a single price and give you the benefits for the duration of your
subscription term. You do not require a separate Cisco SWSS contract.
Cisco Confidential Page 41
Cisco SWSS is sold separately only in support of a perpetual license.
Subscription-based licensing will be offered in a future release of Cisco ONE Software. More details will
be made available with the future release.
Cisco ONE Enterprise Cloud Suite delivers comprehensive end-to-end hardware and
software integration across Cisco UCS and multivendor infrastructure to dynamically
respond to your changing business needs. Unlike other solutions, this solution provides
tools for development to quickly implement current and next-generation application
stacks that can be located on premises or in the hybrid cloud. Cisco ONE Enterprise
Cloud lets your business increase business velocity while transparently connecting your
private and hybrid cloud resources.
To learn more about Cisco ONE Enterprise Cloud Suite, visit