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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.

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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” -Einstein

Farhan Mohamed Systems Engineer

Topics PAGE

Preface ………………………………………………………………………………………………………………………………….. 2

About Author ......................................................................................................................................... 3

Table of Contents .................................................................................................................................. 4

Overview on Cloud Computing ........................................................................................................... 5

Enterprise Cloud Suite .......................................................................................................................... 6

Major Players Strategies ........................................................................................................................ 7

Cisco ONE Software Suite……………………………………………………………………………………………………………….9

i) Overview……………………………………………………………………………………….…………………………………………….11

ii) Benefits ............................................................................................................................................. 11

Cisco ONE Overview ............................................................................................................................ 13

Cisco ONE Datacenter…………………………………………………………………………………………………………...……….14

Case Study…………………………………………………………………………………………………………………………….…………16

Many Problems ONE TM Solution……………………………………………………………………………………….……………18

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

News Hour………………………………………...……………………………………………………………………………..…..….......31

Questions and Answers Panel……………………………………………………………………………………………………...…34

Why Cisco?………………………………………………………………………………………………………………………..….………..41

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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

W

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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

workplace.

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

offerings.

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

most scenarios.

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

time.

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.

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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.

Key Benefits:-

KEY BENEFITS

• 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

savings.

• 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

needs.

• 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

services.

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

defined policies.

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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

provisioning.

• 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

cloud extensibility.

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

environments

• VMware IT Business Management™: IT financial management and cost

benchmarking for applications and services delivered in cloud environments.

Cisco ONE Software Suites:-

Product Description

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

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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

Access

But, what is it all about, See the picture below to understand the software.

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Cisco ONE Software Suites provide customers with four key benefits:

Software suites that address typical customer use scenarios at an attractive price

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

over time

Overview

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.

Benefits

Cisco ONE Software Suites provide customers with four compelling benefits.

Investment Protection 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.

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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.

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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

easier.

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

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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

applicable devices.

Cisco ONE Software Helps Solve Your Most Important IT Problems

Connect branch and campus environments with scalable wired and wireless

access.

Create a highly secure data center network that works with public, private, or

hybrid clouds.

Deliver voice and video collaboration throughout your network.

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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

environments.

Cisco ONE Foundation for Data Center Networking

lets you:

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.

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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.

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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

resource.

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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

advantage.

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.

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Quantifying the Benefits of Cisco ONE Software:- This section focuses on quantifying the cost/ROI1 of Cisco ONE Software using some

examples

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

(where applicable)

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.

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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.

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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 all-Internet WAN.

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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).

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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

comparison.

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.

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Exhibit 5B shows the year-over-year comparison of an à la carte purchasing model

compared to Cisco ONE Software.

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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).

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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.

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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

6C).

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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

need.

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,

Italy.

"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

Enterprises]

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

products.

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

added.

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

otherwise noted.

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

General Questions:-

Q. What is Cisco ONE ™ Software?

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

application software.

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.[1]

● Costs can be amortized over the lifetime of the software, and paid from the more flexible OpEx

budget,

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

managing software:

● 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

the software.

● 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

operational perspectives?

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.

Purchasing Questions:-

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

outcomes.

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

products?

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

types.

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

license(s).

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

subscriptions.

Q. How do I migrate equipment and software I already own to the new Cisco ONE Software licensing

model?

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

renew licenses.

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

subscription contract?

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.

Why Cisco? 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.

Next Steps

To learn more about Cisco ONE Enterprise Cloud Suite, visit

http://www.cisco.com/go/cloudsuite .