Cisco Licensing

Evolution of Software Licensing

The way software has evolved over time has made managing licenses more complicated for everyone. Companies now must deal with many types of licenses, such as subscriptions, one-time purchases, and pay-as-you-go models, while also staying compliant and keeping costs in check. Cisco has grown from being just a hardware company to offering both hardware and software, which has added new challenges to licensing. Cisco Smart Licensing makes this easier by giving you a flexible, automated way to manage licenses and choose what works best for your business.

Traditional Licensing

At Cisco, traditional licensing refers to a legacy model where licenses are tied to specific devices using Product Activation Keys (PAKs). This model requires manual registration and installation of license files on each device. It is now considered an outdated approach, as the lack of flexibility, administrative burden, and scalability challenges highlighted the need for more dynamic and flexible approaches.

Note: A Product Activation Key (PAK) is an 11-digit alphanumeric code provided by Cisco when you buy a traditional software license. Think of it as a receipt that confirms your purchase and helps you activate the software features on your device. By linking the software to your hardware, the PAK ensures that your license is valid and ready to use.

Smart Licensing

Cisco Smart Licensing is a flexible licensing model that simplifies how you activate and manage both perpetual and subscription software licenses across your organization. It provides you with a centralized, automated, and dynamic software asset management system that empowers you to make informed decisions about your software investments.

BENEFITS

• Complete view of what licenses you own and use.
• Easy license activation and ready to use (no manual registration of PAKs).
• Monitor and manage devices, licenses, and usage in real time.
• Reallocate licenses across devices using licensing pooling.

Smart Licensing using Policy

Cisco Smart Licensing using Policy (SLP) is an evolved version of Smart licensing. SLP simplifies device registration, license management, and compliance reporting by using policy-based workflows.

BENEFITS

• Eliminates the need for devices to boot in evaluation mode or require registration on Day 0. This simplifies initial setup and allows immediate use of product features.
• Offers flexible usage reporting policies, with the default policy requiring reports within 90 days of a software upgrade or feature change, and then once every 365 days.

Cisco Licensing Lifecycle

The Cisco Software Licensing Lifecycle is primarily managed through Smart Licensing. The lifecycle is designed to simplify the process of purchasing, activating, managing, and renewing software licenses across the Cisco portfolio.

Buy

To start using Smart Licensing, you need to purchase the required smart-enabled licenses for your Cisco devices and software.

1. Determine licensing requirements.
2. Create a Smart Account, if you don’t have one, using Cisco Smart Software Manager (SSM). This is a one-time requirement for your company.
3. Purchase licenses through a Cisco partner, reseller, or direct, using Cisco Commerce Workspace (CCW). Ensure your licenses are linked to your Smart Account during the CCW purchasing process.
4. Verify in Cisco SSM that the purchased licenses are visible, they should automatically populate to your Smart Account.

Activate

Once licenses are purchased, proceed to activate Smart Licensing on your devices.

1. Enable Smart licensing on the device (on device).
2. Configure communication with Cisco SSM based on deployment option (on device).
3. Generate token in Cisco SSM and apply to device.
4. Licenses are automatically assigned to the device from the license pool in your Smart Account. This ensures that the device is entitled to use the purchased features and services.

Manage

After activating licenses, you can manage and monitor them in your Smart Account by logging into Cisco Software Central (CSC). Use Cisco SSM to monitor license usage and reallocate licenses to other devices, convert PAK licenses to Smart licenses, and resolve compliance issues.

• Use Cisco SSM to monitor license usage and reallocate licenses to other devices, convert PAK licenses to Smart licenses, and resolve compliance issues.
• Use Transfer Asset tool to transfer assets between Smart Accounts.
• Use Ask Licensing to view all licenses across all platforms.

Renew

Smart Licensing can significantly streamline the renewal process by providing centralized management and visibility into your software licenses. Here’s how it helps:

• Cisco SSM provides real-time visibility into license usage, helping you identify which licenses are nearing expiration or are underutilized.
• Smart licensing sends alerts for expiring licenses, ensuring you are notified well in advance to take necessary actions.
• Licenses are automatically renewed every 30 days, ensuring uninterrupted service. Manual renewal options are also available for immediate updates.

Smart Licensing: Smart Accounts

Smart Accounts are foundational to Smart Licensing. The first step in using Smart Licensing is setting up a Smart Account for your company. It serves as a repository providing you with full visibility and access control to your Cisco software licenses, devices, and license agreements. When ordering Smart license-enabled products from CCW, you must assign them to a Smart Account before submitting your order. There are three types of Smart Accounts: Customer Smart Account, Partner Holding Smart Account, and Limited Use Smart Account.

Smart Accounts are organized using Virtual Accounts. When you create your Smart Account, a default Virtual Account is automatically created. You may then add more Virtual Accounts to help organize your licenses by department, network, location, or other designation. Think of the Smart Account as a folder, and each Virtual Account as a sub-folder, all organized based on your business.

BENEFITS

• Real time visibility to the licenses you own and where they are being used.
• It is easy to adjust the Smart Account structure as your business grows and changes.
• User roles are designed to give you full control over the specific activities your users can access.

Customer Smart Account

Once a Smart Account is created and the Smart license-enabled products are purchased, the smart licenses are deposited in the Smart Account/Virtual Account assigned during the ordering process. Customers can access and manage their licenses, monitor license usage, and track Cisco license purchases in Cisco Smart Software Manager (SSM).

Partner Holding Smart Account

A Partner Holding Smart Account is a type of Smart Account for partners or distributors to temporarily store a Smart license order until the Customer Smart Account is identified. Licenses can be assigned to either a Customer Smart Account or a Partner Holding Smart Account as part of the ordering process. However, the software licenses will ultimately have to be assigned to the Customer Smart Account to be used by the customer. All partners and distributors who resell Cisco products need to create a Partner Holding Smart Account. Licenses cannot be activated in Partner Holding Smart Accounts. If a partner is also going to act as a consumer and purchase products for their own company, then they will also need a Customer Smart Account.

Limited Use Smart Account

A Limited Use Smart Account is a Smart Account with simpler and more limited functionality than a standard Customer Smart Account. A Limited Use Smart Account is meant specifically for small business customers that don’t have a company email domain and are using a public email domain, such as gmail.com, yahoo.com, etc.

Smart Licensing Deployment Options

Smart Licensing deployment options determine how devices communicate with Cisco's licensing systems to activate, manage, and track usage of licenses. These options are designed to accommodate different customer needs, such as security requirements, internet connectivity, and operational preferences. Cisco offers 5 deployment options from which to choose.

Connected

Disconnected

Licensing Management Tools

Cisco Software Central

Cisco Software Central is the portal for accessing everything you need to activate and manage your Cisco licenses. All the following licensing tools are accessed via Cisco Software Central.

Cisco License Central

Cisco License Central (CLC) is a centralized platform that gives a clear view of your assets and entitlements. Built with customer input, CLC continues to evolve, eventually merging all Cisco licensing tools into one simple interface for easier and faster license management.

Cisco Smart Software Manager

Cisco Smart Software Manager (CSSM or SSM) allows you to manage all your Cisco software licenses. It is designed to help you manage current licensing needs, review usage trends, and plan for future requirements. Some of the key functions available include creating and managing smart and virtual accounts, managing product instance registration tokens, transferring licenses between virtual accounts, and viewing and running reports on licensing activity.

Asset Transfer

The Asset Transfer tool allows you to move assets from one Smart Account to another Smart Account.

Ask Licensing

Ask Licensing is your go-to digital assistance application that combines AI and automation, so you get instant answers and guidance. You can access Ask Licensing through Support Case Manager, the Licensing Hub, Cisco Software Central, and other licensing portals.

License Registration Portal

License Registration Portal (LRP) is a platform used to manage and download your traditional (PAK-based) licenses for Cisco products.

My Cisco Entitlements

My Cisco Entitlements (MCE) is a secure platform designed to provide insights into your business and help manage Cisco products and services effectively. It offers a comprehensive view of all assets and entitlements, including services, subscriptions, licenses, and devices. MCE is scheduled to be decommissioned August 31, 2025. Cisco License Central will be the new platform going forward.