This document discusses Cisco's new Flexible Consumption Model (FCM) for software licensing. FCM aims to provide more flexibility and lower costs by allowing customers to pay for software licenses as needed rather than requiring large upfront investments. Key aspects of FCM include pay-as-you-grow licensing, global pooling of licenses, and investment protection through software portability. FCM is supported on Cisco's core routing platforms like the ASR 9000 and will provide benefits like reduced total cost of ownership through more efficient license usage and alignment of network growth with demand.

1. Anna Wielosz, Director of Product Manager
Mike Noto, Product Manager
October 9, 2018
Make ASR 9000 Consumption
Simple and Flexible
Dwayne McIntosh, Product Manager

2. Cisco ASR 9000 Intro

3. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Evolutions in play within our critical infrastructure
5G: Application-driven
Transport
• Programmable, high bandw idth netw orkfabric
• Netw ork slicing, SR, EVPN and Security
• Open vRAN and packet-based fronthaul
Fabric-based
Architectures
• Traffic patterns and netw orkdesigns are
changing
• Port capability mapping to service needs
• Automation to manage device scale out and
increase operational ease
• Fabric of fabrics – the future
Cable R-PHY
• Migration to IP based services and
transport for Netw ork consolidation,
capacity augmentation - digitize, virtualize,
capacitize and automate
• Move to a Converged interconnected
netw ork
• 100,000s of miles of fiber, millions of
access ports w ill convert to Ethernet.
CDN Smart Peering
• Flattening of the internet, domination of
video – demand for traffic optimization
• Analytics and automation - for planning,
policy and control
TDM2IP
• Uproot everything to Ethernet
(revolution) or migrate?
• Enable NG IP services
• Simplification and consolidation

4. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Preparing Service Providers for Mass-scale Networking
• High-density 100GE
platform
• Dynamic bandwidth
optimization
Massive Bandwidth
• Automatable networking stack
• Closed-loop automation
Scaled Operations Secure Networks
• Trusted hardware and
software
• Automated DDoS mitigation
Enabling NewArchitectures

5. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Fourth-
generation
line card
New
consumption
model
Trusted
platform
ASR 9000
Reloaded
4
ASR 9000
4th generation of
line cards

6. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
ASR 9000 4th Generation Linecards – Get Ready for Hyperscale!
9922
9912
9904
9910
9906
Lower TCO
Powered by
64-bit XR
Four Times
Capacity Increase
3.2T Line Cards
RSP5, RP3, SFC3

7. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
4 x capacity increase per system
10GE, 40GE, 100GE and 400GE densities w/ rich features
Hitless FPD upgrade possible (no LC reload)
Sub Sec ISSU capable
Cisco NPU 4 in 1 : Integrated NPU, PHY, FIA, Memory
Native support for 10/25/40/100/400G
Ultra high control plane scale with 64 bit XR
HW acceleration for L2 classification, hashing, prefix lookup,
ACL range compression, header re-write, flow ordering,
statistics, policers, WRED
Scale
Low OPEX:
• Drastically lower power profile: ~ .5W/GE
• Improvement over 3rd
Gen Linecards w/ power down
capability of the complete slice path including NP
Low CAPEX - PAYG
Lower TCO
Innovation Leading the Market
4th Generation Linecard - Silicon Innovation

8. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
ASR 9000 Built to Last
80x capacity increase in eight years; 95% power reduction/GFullDuplex,LineRateCapacity(Tbps)
2009 2012 2015 2018
100
7
1
16
32
9006
9010
9922
9912
9904
9910
9906
80G/slot
360G/slot
800G/slot
• 10 Watts/Gbps
• 32 x 10G/chassis
• 2.5 Watts/Gbps
• 720x10G/chassis
• 40 x 100G/chassis
• 1.5 Watts/Gbps
• 1600 x 10G/chassis
• 160 x 100G/chassis
3.2T/slot
40G/slot
• 8 Watts/Gbps
• 64 x 10G/chassis
1.2T/slot
• ~0.5 Watts/Gbps
• 640 x 100G/chassis
400GE Ready!

9. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Why Upgrade to ASR 9000
Cloud Scale Ready
Move with Agility
Streamline
Operations
State of the art
Security

10. SP Networking Product Management
September 2018
SP Routing
Flexible Consumption Model
TechTalk

11. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Agenda
1
2
3
4
Problem Statement
Flexible Consumption Model
Customer Benefits & TCO
Supported Products
Solution Details5

12. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Solving Customer Problems Through
Business Innovation
Flexible Consumption Model provides business agility in managing limited CapEx budgets
Addressing massive growth
with flat budgets
Lower upfront costs and
lower cost of ownership
Difficult to fund new service offerings Provides more flexibility and better
visibility with capacity planning
Need new ways to offer
market differentiation
Software innovation for new
revenue generating services
Software innovation needed to keep up
with customer demand
Leverage Cisco’s carrier class software
for market-leading services
Investments in one project
cannot be reused
Investment protection through
software portability
Sunk costs Leverage software portability when
moving to next-gen platforms

13. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
IOS-XR Flexible Consumption
Flexible
Consumption • New IOS-XR capability
• Software licenses used to
add capacity as needed
• Simplified license tracking
What is it?
• Deploy router with
minimum software fill-rate
• Easily add capacity as
demand increases
• Global network visibility
How does it work?
• Reduced upfront capital
and network-wide pooling
• Software innovation
• Investment protection
• Includes automation tools
Why use it?
• On-going software
innovation keeps IOS-XR
software cutting edge
• Only Cisco has network-
wide pooling, license
portability, more visibility
Why is it better?

14. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Reduce upfront capital
Network Economics
Year
1
2
4
3
5
Network Ports
Pay for Use
West North East
Resource
Pooling
Portability
WAE Automation
EPNM Manager
Embedded
Automation
NSO Automation
$ Utilize capital efficiently
Protect your investment
Embedded Automation

15. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Note: Smart Licensing is a requirement
for all FCM customers
Flexible Consumption Model (FCM)
Offer Structure
Software
Essentials
Software
AdvancedTwo simple suites:
Essentials and Advanced
Automation attach for
scalable network
software
2
Hardware
Hardware isseparated
out from new Software
suites
1
SIA Feature upgrade PIDs
provide access to
innovation and investment
protection
3

16. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Simple, Flexible Software Suite
Contents of Suites
Software
Essentials
Software
Advanced

17. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
$100
$40 $40 $40
$24
$42
$60
$0
$20
$40
$60
$80
$100
$120
Traditional HW & SW FCM Year 1 FCM Year 2 FCM Year 3
Pay-as-you-Grow
HW & SW HW SW
$64
$82
$100
Initial Savings
of up to 36%
$100
Flexible Consumption Model Example Savings
• Flexible Consumption Model offers pay-as-you-grow built into the pricing model
• Savings* of up to 36% day 1 with ability to grow as your customer demand grows
* Individual savings will vary on case-by-case basis

18. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year
10
Flexible Consumption vs. BAU TCO
SW PAYG Running Total (w/ HW Refresh)
Vortex Running Total (w/ HW Refresh)FCM Running Total (w/ HW Refresh)
BAU Running Total (w/ HW Refresh)
Customer TCO Example
BAU = Business as Usual (Traditional)
FCM = Flexible Consumption Model
Example TCO Savings from:
1
Lowerinitial pricing
with FCM
2
Pay-as-you-grow aligns
network growth with
customer demand
3
Lowercosts at refresh
year 6, with software
portability



* Individual TCO savings will vary on case-by-case basis

19. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Phase 1 Orderability
Core & Aggregation: NCS
5500 Phase1 PIDs (Hidden
Orderabality)
Phase 3 Orderability
ASR 9000 FCS Line Card
Access (NCS 560)
Virtual (XRv 9000)
Others To Be Announced
Phase 2 Orderability
Access: NCS 540 GPL
Orderability
NCS 5500 Phase 2 PIDs and
GPL Orderability
Flexible Consumption Model Roadmap
Coming Soon by Nov’18!NCS 5500 Ready to Sell NCS 540 Ready to Sell!
FCM: Evolving as the SP Networking Pricing Standard

20. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Solution Details

21. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Per Port SW Licensing Check
License Usage Reporting Is the 100G port active?
+1 Essentials
SW Licenses
(100G)
No license
needed, check
next port
Is an advanced feature
configured (L2VPN, L3VPN,
MACSec)?
+1 Advanced
SW Licenses
(100G)
next port
No Adv license
needed, check
next port

22. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Per Node Capacity
ASR Flexible Consumption Model Line Card Example
• Total configured
bandwidth 30G+300G=
330G
• Rounding 330G to nearest
100G per node becomes
300G or 3x100G
Essentials licenses
• Usage is always rounded
to the nearest 100G, with
a 100G minimum

23. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Customer Benefits of Smart Licensing
Add users and licenses
as needed.
No PAKs. Easy activation.
Device is ready to use.
Flexible licensing, use across devices.
Software, services, devices
in one easy to use portal.
Manually register each device.
Unlock with license key.
Licenses specific to only one device.
You cannot use more than
you paid for.
Customers do not know
what they own.

24. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Flexible Consumption Model (FCM)
Smart Licensing Deployment Steps
Cisco® Commerce
Smart Licensing
Satellite
FCM:
NCS-5502-SYS
FCM:
ASR-9906
Cisco Smart Account
FCM License Usage Report
License
Usage Info
License Usage
License Owned
Cisco® Commerce

25. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
SW RTU
Portability
Access #1
Access licenses (green) are shared
across the FCM Access network
Core & Aggregation licenses (blue) are
shared across the FCM Core &
Aggregation network
Access #2
Access #3
Core &
Aggregation #1
Services
Edge #1
Services
Edge #2
Services
Edge #3
Core &
Aggregation #2
Core &
Aggregation #3
FCM Category #2:
Core & Aggregation
FCM Category #1:
Access
Flexible Consumption Model License Pooling
FCM Category #3:
Services Edge
Services Edge licenses (orange)
are shared across the FCM
Services Edge network

26. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Efficient License Usage: License Deficit
With a deficit of
10 Advanced
licenses, it is
time to order
more
• Common pool of SW licenses held in customer’s Smart Account
• After each node reports license usage, a tally is made to see if enough licenses exist
• “Red” shows a deficit (need more licenses) and “Green” shows a surplus available
A99-32X100GE-T-FC

27. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Efficient License Usage: Adding Licenses
Here we have added
20 new Advanced
SW licenses, to get
back in compliance
• Here customer added 20 new Advanced Software licenses into their Smart Account by
placing an order on CCW
• Now with 40 Advanced Software licenses, this leaves a surplus of 10 available for growth
Now customer
has a surplus of 10
Advanced SW
licenses
A99-32X100GE-T-FC

28. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Modernized Operations & Management
A99-32X100GE-T-FC NCS-5502-SYS

29. © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
• For information regarding the Flexible Consumption Offer:
• https://www.cisco.com/c/en/us/products/collateral/routers/asr-9000-series-
aggregation-services-routers/datasheet-c78-741260.html
For More Information