Why did Cisco introduce the Enterprise Agreement?

Cisco rolled out the Enterprise Agreement (EA) framework back in 2016 to tackle the challenges and trends that organisations were facing when it came to procuring and managing licences.

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22nd June 2023

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Why did Cisco introduce the Enterprise Agreement?

Cisco rolled out the Enterprise Agreement (EA) framework back in 2016 to tackle the challenges and trends that organisations were facing when it came to procuring and managing licences. It marked a significant shift in Cisco’s licensing approach, aiming to simplify and add flexibility to the way organisations acquire and handle Cisco solutions. Since then, Cisco has been continually enhancing and evolving the Enterprise Agreement model to keep up with the rapidly changing digital landscape. The latest version, Cisco Enterprise Agreement 3.0 (EA 3.0), comes with additional features and benefits to further empower organisations in boosting their IT flexibility and scalability.

Camworth, as a partner of Cisco, is well-positioned and trusted to assist organisations in navigating the complexities of implementing complex Cisco Enterprise Agreements and Service Provider Network Agreements (SPNAs) – which are the equivalent agreements for Service Providers, ISPs, and Alt Nets and we help our clients realise the significant benefits – including operationally and financially – by simplifying how licenses are procured and managed. We will cover off the benefits of entering into such an agreement in our next blog but for now, let’s dive into five trends that prompted the introduction of the Enterprise Agreement model.

Five Trends that prompted the introduction of the Enterprise Agreement

  1. Increasing Complexity: As technology advances at a rapid pace, organisations require a diverse range of solutions to meet their business needs. However, managing multiple licences from various vendors can quickly become a complex and time-consuming task. Recognising this challenge, Cisco introduced EAs to simplify the licensing process and provide organisations with a unified framework for procuring and managing their Cisco solutions.
  2. Changing IT Consumption Models: Traditional licence models often involve upfront costs and long-term commitments that may not align well with the dynamic needs of organisations. Cisco acknowledged the shift towards more flexible consumption models, where organisations prefer to pay for licences based on actual usage. EAs allow organisations to consume licences according to their specific requirements, offering greater flexibility and cost optimisation.
  3. Scalability and Future-Proofing: As organisations grow and evolve, their IT needs naturally change. Cisco EAs empower organisations to easily scale their licences, accommodating increasing demands without incurring additional costs or navigating complex negotiations. This scalability ensures that organisations can adapt to their changing requirements while safeguarding their investments and future-proofing their IT infrastructure.
  4. Simplified Management and Visibility: Managing licences from multiple vendors can present challenges such as administrative overhead and a lack of visibility into licence utilisation. Cisco EAs address these concerns by consolidating licences into a single agreement, reducing complexity and administrative burdens. Additionally, Cisco offers tools like the Smart Software Manager (SSM), which enhances visibility and provides analytics to enable data-driven decisions and optimise licence usage.
  5. Strategic Alignment and Vendor Simplification: Organisations strive to align their IT strategies with their business objectives, and managing multiple vendors can hinder this alignment. Cisco EAs grant organisations access to Cisco’s comprehensive technology portfolio, which spans networking, security, collaboration, and data centre solutions. This breadth of products enables organisations to address diverse business needs effectively. By consolidating licences and solutions under a single agreement, organisations can simplify vendor management, streamline procurement processes, and foster a strategic partnership with Cisco.

By introducing Enterprise Agreements, Cisco has effectively addressed the pain points organisations commonly face in licence management, scalability, visibility, and strategic alignment. These agreements offer a simplified and flexible approach to licence procurement and management, allowing organisations to adapt, scale, and optimise their IT environments more effectively. With Camworth’s expertise as a trusted Cisco partner, we are ready to support organisations in navigating the complexities of implementing Enterprise Agreements and Service Provider Network Agreements, ensuring smooth and successful outcomes.

Find out more about Cisco EAs and Cisco SPNAs


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