Networking giant Cisco offers a range of solutions to client organizations of all sizes, including network infrastructure, security and collaboration solutions, Internet of Things (IoT) devices and cloud-based services.
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Cisco's fiscal year-end is July, making it one of the best times of the year to negotiate non-standard concessions from your Cisco agreements, investments, and relationships.
Clients consider Cisco maintenance compulsory, not realizing that these costs can absolutely be optimized, frequently resulting in reduced costs with no diminution of business value.
Here are 5 ways to save money on Cisco that you should consider this July:
1 - Choose the right support level: Cisco offers different support levels for its products. Choosing the appropriate level for your needs can help you save money while still ensuring your equipment is properly maintained.Cisco offers different support levels for its products, including:
There are also various support levels for hardware replacement with SMARTnet. Be sure to rationalize the hardware replacement turnaround to actual need (e.g. 24x7 4 hour response vs. 8x5 next business day)
It's important to carefully consider your business needs and budget when choosing a support level for your Cisco products. The right level of support can help ensure that your equipment is properly maintained, and any issues are quickly resolved.
2 - Depot your own equipment: Depot equipment yourself and providing 9-5 M-F support instead of 24x7x365 can be a cost-effective option for businesses that don't require around-the-clock support or software updates available only through a support agreement. This involves keeping spare equipment on-site and handling any maintenance or repairs during regular business hours.However, it's important to note that this approach may not be suitable for all businesses, especially those that require high availability and cannot afford any downtime. In such cases, it may be necessary to opt for a support contract that includes 24x7x365 coverage to ensure the equipment is properly maintained and any issues are quickly resolved.
Also, if you choose to depot the equipment yourself, you'll need to ensure that you have the necessary expertise and resources to handle any maintenance or repairs. This may involve hiring additional staff or investing in training to ensure that your team is properly equipped to handle any issues that arise.
Ultimately, the decision to depot the equipment yourself and provide limited support hours will depend on your specific business needs and budget. It's important to carefully consider your options and weigh the costs and benefits before making a decision.
3 - Opt for refurbished or pre-owned equipment: Purchasing refurbished or pre-owned Cisco equipment can save you a significant amount of money compared to buying new. These products are typically tested and certified by the manufacturer or a third-party provider to ensure they meet Cisco's quality standards.There are some potential downsides to buying pre-owned or refurbished equipment, such as:
Regarding Cisco's support terms, purchasing pre-owned or refurbished equipment surprisingly does not violate any terms of support. However, it's important to note that Cisco may not provide support for equipment that has been purchased from unauthorized resellers or distributors.
To avoid any potential issues, it's recommended to purchase pre-owned or refurbished equipment from reputable resellers that have been certified by Cisco. Additionally, it's important to ensure that the equipment is properly tested and verified to be in good working condition before making a purchase.
4 - Outsource Support: Third-party support providers offer maintenance and support services for Cisco products outside of Cisco's official support channels. These providers typically offer a range of services, including hardware maintenance, software support, and network monitoring, among others.The main advantage of using a third-party support provider for Cisco maintenance is cost savings. These providers may offer more affordable pricing than Cisco's official support channels, and they may be able to tailor their services to better fit your business needs.
However, it's important to carefully consider the potential risks and drawbacks of using a third-party support provider. These risks can include:
Ultimately, the decision to use a third-party support provider for Cisco maintenance will depend on your specific business needs and budget. It's important to carefully weigh the potential risks and benefits before making a decision.
5 - Optimize your SmartNet: Cisco SmartNet Total Care is a service offered by Cisco that provides technical support, software updates, and hardware replacement for Cisco products. SmartNet contracts can be a significant investment for client organizations, so finding ways to save on these contracts can be valuable. Here are some ways to save on SmartNet contracts:Evaluate coverage options: SmartNet contracts come with different levels of coverage, so it's important to evaluate which level of coverage is necessary for your business needs. That is, be sure to rationalize the hardware replacement turnaround to actual need (e.g. 24x7 4 hour response vs. 8x5 next business day). Opting for a lower level of coverage can result in cost savings.
It's important to note that while there may be ways to save on SmartNet contracts, it's also important to ensure that your Cisco products are properly maintained and supported. Skipping or delaying SmartNet contracts could result in increased downtime, higher repair costs, and potential security risks. So, it's important to carefully evaluate your options and choose a contract that provides the necessary level of coverage for your business needs.
NET(net) Can Help:
NET(net) has extensive experience helping clients optimize their Cisco agreements, investments, and relationships. There is an 85% probability we can help you save between 13-53%. Contact us today to learn more about how we can help you save 13-53% on all your technology investments, including those with Cisco.
Call to Action
Cisco’s July Fiscal Year-End is fast approaching, making this the best time to capture value, so Act Now.
At a bare minimum, everyone should at least Price-Benchmark their Cisco proposal, renewal, and/or existing agreement. NET(net) can benchmark your Cisco deal in a matter of minutes, and show you how much you can save.
Or, Sign up now for a Savings Cloud subscription on Cisco, and we will get started right away to help you minimize costs and risks, and maximize the realization of value and benefit.
Summary
To successfully negotiate with Cisco, you need (i) a federated view of the market to understand the art of the possible, (ii) substantial buy-side knowledge and subject matter expertise to develop a plan of action that overlays the potential opportunities for value capture onto your specific environment and use cases, including, but not limited to, your business requirements, your infrastructure, your use cases, and your consumption patterns among other considerations, and (iii) deep supply-side commercial expertise to model the various deal permutations to demonstrate what actions offer the highest yield of savings and benefits. The ecosystem of consultants, VARs, and implementers are all motivated to maximize costs and minimize value, so you also need a fierce client advocate who shares your values to help you pay the lowest total amount to get the most amount of value. With NET(net), you get the right blend of technical, commercial, and contractual knowledge in a partner that is exclusively committed to you.
NET(net) has the information you need, offers the experience you want, and delivers the performance you deserve to help you minimize cost and risk and maximize the realization of value and benefit.
About NET(net)
Founded in , NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get, and keep more economic and strategic value in their technology supply chains. Over the last 20 years, NET(net) has influenced trillions of investment, captured hundreds of billions of value, and has helped clients cost and value optimize all major areas of IT Spend, including XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, and Telecommunications, among others. NET(net) has the experience you want, demonstrates the expertise that you need, and delivers the performance you demand and deserve. Contact us at , visit us online at www.netnetweb.com, or call us at +1 (616) 546- to see if we can help you capture more value in your IT investments, agreements, deployments, and relationships.
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While buying new is certainly an option, purchasing pre-owned apparel can save you some serious money. This doesn’t just apply to designer clothing—it can apply to that expensive networking equipment you have your eye on too.
You’re on the hunt for some new Cisco products… but have a tight budget to keep in mind. What are your options? Let’s take a step back to when the hit song “Thrift Shop” had taken over the radio. Don’t recall? Feel free to look it up—we’ll wait.
In this song, Benjamin Hammond Haggerty, known by his stage name, Macklemore (the name of his made-up superhero), makes thrift shopping sound pretty awesome… and he’s got the right idea.
While buying new is certainly an option, purchasing pre-owned products can save you some serious money. This doesn’t just apply to designer clothing—it can apply to that expensive networking equipment you have your eye on too.
You’ll need more than $20 in your pocket like in the song, but when you’re working with a limited IT budget, buying pre-owned Cisco products may be the best option for you.
Before you start popping tags, below are a few pros and cons to consider as you jump into the buying process. We want to make sure that you not only save money but also walk away with functional and reliable Cisco products.
While it’s a trusted brand, new Cisco products are not exactly known for their low price. Whether you have a particularly limited IT budget to work with, or you just want to save as much money as possible, getting pre-owned Cisco products is a great solution.
You can save your organization up to 90% off list prices—and still get high-quality technology you can rely on.
“The used-hardware market — commonly referred to as the 'secondary market' — can provide significant savings on hardware expenditures.”
- Gartner, Used-Hardware Resellers Offer Hardware and Support Cost Savings, February , Foundational October [ID G]
What if your organization is at that in-between stage where you’re ready for some new equipment, but not ready for a full-on upgrade? Buying used Cisco products can help you hold off on an upgrade until you’ve gotten the most out of your existing network.
If you were to upgrade every three years as OEMs suggest, you’ll undoubtedly be left with Cisco products that haven’t truly reached the end of their useful life. This means you’ll be upgrading when you still have valuable networking gear, and you’ll lower your ROI by turning over that equipment too soon. Buying used technology at your pace saves you money in the long run as you can replace failing machines without doing a full upgrade and maximize the returns on your initial IT investment. That's managing the full life cycle of your Cisco products wisely!
“Replacement of network equipment does not need to follow a timed schedule. Upgrades should follow a consistent policy set by IT and not by the vendor.”
- Gartner, Know When It’s Time to Replace Enterprise Network Equipment, March , Foundational June [ID G]
Buying pre-owned Cisco products not only allows you to have quality equipment at a fraction of the cost, it also keeps perfectly functional products out of landfills longer. This reduces landfill waste and the direct impact your organization has on the environment.
In an age where the focus on “going green” is stronger than ever, promoting environmentally friendly practices will also help maintain or improve your organization’s reputation with customers.
You might be thinking, if you buy used Cisco products you won’t have that Smart Net Total Care maintenance support. However, if you’ve done your research prior to buying and purchasing your Cisco products, you know you can find trusted third-party maintenance programs to back the certified pre-owned equipment you buy. It matches the coverage of OEM support and costs you up to 50-60% less than OEM offerings.
A reputable seller should also offer a warranty with their refurbished equipment, so your organization will be covered no matter what. For example, CXtec offers equal2new® refurbished equipment which is performance guaranteed and comes with a true lifetime warranty as a standard business practice.
“TPM contracts will offer customers an average of 60% savings off of OEM support list prices. However, depending on equipment type, location and product density, Gartner has seen that the range of savings with TPM contracts is 50% off OEM list up to 95% off OEM list.”
- Gartner, Competitive Landscape: Partnering With Third-Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization, July [ID G]
The only way you wouldn’t have the opportunity to support your Cisco products with a third-party maintenance plan is if you purchased from companies selling used Cisco products that don’t come with any maintenance support or warranty.
If you’re buying a Cisco router from an unknown vendor, there’s a high probability that your gear won’t be covered, and you certainly won’t be receiving additional support. It's safest to buy your Cisco products from a reliable vendor that stands behind the equipment they're selling to you.
If your organization worked directly with an OEM partner when you first built your IT network, be prepared for some hassles as you switch over to buying used Cisco products. Think about it—the OEM is about to lose some major business, so of course they’re going to try their best to convince you to abandon your plans of buying used networking equipment.
You’ll get every argument under the sun, from “used equipment won’t match the performance offered by new equipment” to “used Cisco products don’t qualify for maintenance or support.” These claims may be valid if you’re not thorough in your research on the secondary market provider you’re buying from.
You'll probably ever heard some FUD (fear, uncertainty, and doubt) coming your way from the OEM and its partners. Don't be fooled. With a quality vendor, used Cisco products can be even more reliable than new.
Most of the arguments you hear can be debunked by doing some simple research to prove you’re getting your Cisco products from a reputable vendor. Make sure you know your source and ask the right questions about your technology partner to ensure you’re getting the highest quality equipment, at the best value, for your business.
“Network original equipment manufacturers (OEMs) and their channel partners often use aggressive sales tactics, as well as fear, uncertainty and doubt (FUD) to scare enterprises away from using third-party transceiver OEMs that offer lower prices.”
- Gartner, How to Avoid the Biggest Rip-Off in Networking, August [ID G]
Many of the arguments you’ll hear from the OEM apply specifically to “used” products. Here’s where buying used can get a little tricky. You need to pay specific attention to the terminology used. There’s a big difference between equipment that is simply “used” and equipment that is refurbished and deemed “certified pre-owned.”
To clarify, when we talk about the pros of buying “used Cisco products” we’re referring to equipment that has gone through a stringent refurbishing and certification process, meaning it has been cleaned, tested and reset to meet the original manufacturer standards.
Let’s go back to the thrift shop analogy for a second. If you’re eyeing a pair of used shoes there’s a very good chance that they haven’t been cleaned, and it’s anybody’s guess as to whose feet have been in them. Gross.
Now imagine if these shoes could be refurbished? It would restore them to a like-new condition so you’d never have to worry about any of those things. The same goes for Cisco products. This is a con that can be made into a pro as long as you do your research.
While you may be stuck with that ninety-nine cent leopard mink from the thrift shop, you can have quality Cisco products that can be purchased and supported for a fraction of the price. We’d say that’s a pretty good bargain.
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