Cisco rolls out Cisco Enterprise Agreement for software


Software is now dominating IT spending.

My research shows that the combination of SaaS and on-premises software is now a $650 billion market that has seen a steady growth of 6 percent per annum over the past five years. Today, almost all areas of IT are sold at least partially as software, including applications, security, storage and network infrastructure. Software is agile, enables rapid innovation and is a key component of digital transformation.

This is one reason why enterprise agreements (EAs) for software have become increasingly popular with corporate buyers. Enterprise agreements are software site licenses that are issued to a large company that brings consistency to pricing and allows for the widespread use of the application throughout the company. EAs have become a common option for almost every large software company today.

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Software purchasing can be highly complex, as businesses need to navigate through the quagmire of different options and usage rules. ZK Research has found that license complexity causes companies to exceed their budgets by an average of 28 percent every year. Also, “truing up” licenses is time consuming, costly and often involves penalties and retroactive fees.

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