Mandatory Cisco DNA Licensing – is this the Future??

With the release of the new 9200 series switches many enterprise organizations are starting to look towards the future. Cisco has also been looking towards the future… of their profit margin. With the 2960x platform is nearing it’s EOS/EOL announcement, Cisco has been working to promote the new hardware. And by now most Cisco enterprise customers have realized that DNA Center licensing is mandatory on your initial hardware purchase. This is certainly a deviation from Cisco’s normal à la carte licensing, but what do you think is the driving force behind all of this?
The era of SaaS and Subscription based licensing has been upon us for some time. Last year Gartner predicted, “By 2020, all new entrants and 80% of historical vendors will offer subscription-based business models”. These shifts to recurring-revenue models are the latest adaptation for companies like Cisco to continue to pad their bottom line with dollars their customers may not be ready to spend. After all, why would Cisco miss out on dollars left on the table?
When I started laying out the network hardware roadmap for the next 24-36 months, I quickly realized that costs for the Catalyst 9200 series will raise per port Continue reading