Reply to post: Re: Yipee

Oh! What a lovely pandemic, says Cisco as it sees wave of network refreshes on the horizon

Anonymous Coward
Anonymous Coward

Re: Yipee

I am sorry but I have to strongly disagree. Used to work for Cisco until a year ago and saw the dynamic from the other side.

It was THE CUSTOMERS who demanded it. Because of cloud and everything as a Service every single conversation turned into a whine fest "why do we have to spend so much why can't we pay monthly per demand like in AWS waah waah waah". No matter how many times we showed them it's cheaper to go with CAPEX it was like talking to brainwashed members of a cult.

The business even offered transferable entitlements (=license). Basically, you buy the feature not tied to the hardware and when you buy a new router or switch you don't have to buy the license again but use the universal one. The only recurring cost is hardware and software support.

But noooooooo, it had to be OPEX. I don't know how many times I explained to some bonehead "you guys historically keep your gear 6 to 7 years. If you buy the license the cost is spread over those 6 to 7 years but in the subscription it's spread over 3. Why do you want to pay double?" (Mind you, I made more money in the subscription. Not just because of the higher revenue but also because we would get a 1.5-3x multiplier depending on product).

Nope, it was like talking to a chair.

Ya know, at some point you give up and give the customer what they are asking for and that seems to be a fucking subscription model no matter how stupid it is. And this is where we are now.

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