LAS VEGAS - Cisco last week said it was considering unbundling network software from its current hardware platforms - a move that could end up costing users more but could give them increased flexibility in buying and configuring the company's gear.
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Cisco floated the idea of decoupling the sale of IOS software, network hardware and SMARTnet maintenance contracts at its Networkers user conference, which drew more than 10,000 customers to the Las Vegas Convention Center. Though not publicly announced, the software evolution idea comes as Cisco looks to become more of a software and applications vendor. It already has sold millions of licenses for unified communications, network management and security applications and has an eye on more advanced software areas such as telepresence.
"We have to evolve our software strategy," said Cisco CEO and Chairman John Chambers during a session with journalists at the show. "We tend to lump software into maintenance. So often people get the difference between maintenance and software upgrades [confused] when in fact they are in the same category."
Chambers was referring to Cisco's practice of bundling router and switch software with ongoing maintenance contracts on the equipment, which usually is required to receive updated, licensed IOS software. By breaking software out as a separate item, Chambers said, Cisco could give customers a clearer idea of what software they're buying and more options for mixing services with hardware and software. How this change would affect costs for users remains a question.
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