Seeking Alpha

Cisco overhauls enterprise pricing, hopes to drive software sales

  • Cisco (CSCO) is packaging various software/services offerings found in its ONE software-defined networking (SDN) platform (previous) into four suites that can be individually licensed, and which are meant for different use cases.
  • "We have a bunch of products. We’ll turn those products into licenses – a data center suite, a WAN suite, an access suite – for the enterprise," says sales chief Rob Lloyd.
  • Central to these efforts is Cisco's APIC SDN controller, unveiled last November along with several other products from its Insieme unit, and promising superior app/network visibility relative to alternatives.
  • Cisco's likely goals, in addition to simplifying its pricing: 1) To head off a slew of SDN rivals - none larger than VMware/Nicira - hoping to sell enterprises on programmable networks capable of running on commodity (read: non-Cisco) gear. 3) To further drive a mix shift towards software at a time when hardware margins are seeing a bit of pressure.
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