Simplifying the Cisco Software Experience
I guess the biggest question that I have is for who? Is the software experience being simplified for Cisco? Or, its end-users? Is it all end-users, or just some? Was there really anything complex about licensing before? I think the short answer is that Smart Licensing is simplifying the software experience for some of Cisco’s largest customers, as well as for Cisco’s shareholders.
Since taking the helm, CEO Chuck Robbins has focused on subscriptions and recurring revenue, a much more lucrative model than a one time purchase.If you look at the most valued technology firms in the world, you’ll find names like HP and IBM who previously only sold hardware but are now considered primarily services and/or software companies. The valuation of services and software companies can be 15-20 times EBITA whereas hardware companies are 2-5x. The only end-users this plan helps is the giant enterprises who do not have any ITAM solutions in place.