Cisco surges after pricing switches-plus-subscriptions just below old hardware prices The flagship of Cisco's “intent-based networking” push, the Catalyst 9000 switch, is leaping out the door, and Switchzilla delivered other good news on it FY2018 Q2 earnings call. The Catalyst 9000 is also in the vanguard of Cisco's other most important strategy, pivoting its income to software and subscriptions. That plan's …
Yes of course Cisco are changing their financial model at their customers expense. It's just that initially it doesn't look like it.
Ask the Cisco users if they feel ripped off when their third subscription payment is due which, I'm sure, will be inflation adjusted. What happens to the equipment if the subscription payment is late or stopped altogether? At least with the fully paid-up model everything continues to work.
The market for second-hand Cisco equipment will be interesting too if "subscriptions" are not transferable.
As usual the vendor will hold all of the cards.....
The Cisco ONE licenses for Catalyst 9K's are subscription only. The feature set licenses have been reduced to just two variant's - Network Essentials & Network Advantage. Essentials is equivalent to LAN Base and Advantage to IP Services. Want to only buy IP base then you're S.O.L, pay more for the Advantage subscription. If your subscription expires the hardware won't stop working but you can't access any software upgrades either.
See the 11 page FAQ if you really want to know more, page 6 for switching. https://www.cisco.com/c/dam/en/us/products/collateral/software/one-wireless-subscription/q-and-a-c67-739601.pdf
"If Cisco had taken what customers were already buying and added subscription licences, customers would have seen straight through it "
Read between the lines ... we had to adjust it to make it more opaque so they wouldn't "see straight through it". This term is usually used when you have an obvious scam.
And in related news: car manufacturers have stopped making cars available for sale or hire-purchase. Customers will have to pay an up-front fee for the chassis, plus an annual subscription for as long as they wish to use it. The subscription includes an activation code for the engine management unit.
A spokesperson said: "for too long, people have been able to use their vehicles for profit - going to work, making deliveries etc - and yet the manufacturers who make this possible have not shared in the benefit. The new vehicle licensing model helps to rectify this obvious unfairness."
The Register 
Biting the hand that feeds IT
Copyright. All rights reserved © 1998–2024
