How Much Time Do You Spend on Licensing Issues Instead of Driving Innovation?

imbalanceIT organizations need to be responsive to the business. Digital transformation, IoT, and cloud computing initiatives require the underlying IT environment (HW and SW) to be able to react quickly and scale seamlessly, but it can’t do that if your technical resources are spending more time getting the proper licenses correct. This is especially impactful in fast growing companies.

Organizations want dynamic environments that are secure and up to date and deliver a great customer experience. However, as these environments become far more sophisticated, it will be imperative to ensure employee productivity is optimized for strategic initiatives and not routine tasks—like ordering new licenses.  

This is why organizations get enterprise license agreements or ELAs. So every time a new license is required, they do not need to go through a time-consuming procurement process. ELAs provide an organization with the ability to rapidly scale its environment—however, all ELAs are not created equal and many were conceived and constructed prior to digital transformation or even before cloud became a reality.

Companies have recognized the need for innovative new programs and Cisco, for example, has recently revamped its enterprise agreement or EA to provide the flexibility and predictability required by modern IT environments—providing lower costs and better predictability, and only charging for licenses deployed on a go-forward basis (True Forward), plus including license portability for dynamic cloud environments and the ability to consume new capabilities faster. Based on qualitative calls with a number of Cisco customers, ESG found that the Cisco EA has helped organizations to increase business agility, reduce complexity, and lower overall costs.

Some highlights include:

“Our Cisco EA is a building block of shifting our views on technology. We are now better aligned with our groups that interface and use our networks because the hurdle of approving and procuring individual licenses has been eliminated.” – Multinational Property Services Company

“Licensing used to be a full-time job of fairly mundane tasks. With Cisco EA our licensing tasks went from consuming 40 hours per week to 5 hours. This allowed us to shift these resources to a much more strategic role. Additionally, we have seen an increase in job satisfaction in the people who used to be tasked with license procurement and tracking.”  US-based Health Insurance Company

True Forward is Cisco’s unique approach to licensing that enables growth without retroactive fees. Each year, customers are allowed growth without true-up licensing costs. This is Cisco’s way to invest in its customers’ success and give its customers predictability in licensing costs.

Topics: Networking