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News and analysis of developments in the enterprise communication industry and market with primary focus on Europe.

The author aims to tap into ideas, insights and thoughts of the readers to get varied perspectives.

Views expressed in this blog are solely the author's opinion and in no way reflect those of his employer.

Friday, June 29, 2007

Cisco to change 'right to use' license model

It has been a nightmare for businesses to understand how much a Cisco solution costs, what with its complicated pricing structures. For instance- to buy a basic 7906G phone, one needs to not only buy the phone for $175 list price but also pay another $100 for something Cisco terms as 'right to use' license. It is with this license that things get complicated.

While each 'right to use' license cost $50, different devices require different numbers to run them. While 7906G requires just 2 such licenses, the high end 7985 G requires 7 of them. Think of the confusion it creates when a user buys a desktop, mobile communicator and a soft client that run on the same Cisco Call Manager.

I understand that Cisco is moving away from the device user license regime to a user license regime. This I believe will significantly reduce the complexity of costing and promote Cisco's high-end portfolio.

1 comment:

matt lambert said...

I was at the announcement of the original plan, and the stunned silence in the room of 150 customers obviously had an effect in the fairly short term. Thanks for the note. The intention was obviously to induce customers to stay with Cisco handsets, by doubling the software right to use licences for SIP handsets. Far too blatent! Regards Matt