Cisco Licensing Essentials
Cisco’s goal is to simplify how you activate, monitor, and manage Cisco software, devices, subscriptions and services, and ensure you have the real-time visibility and control necessary to support your organization’s growth and operational success.
Cisco Smart Licensing
Cisco Smart Licensing is our current, proven approach to license management. Smart Licensing is a flexible licensing model designed to simplify the purchase, activation, and management of Cisco software across an organization. It provides an easier, faster, and more consistent way to handle software licenses without the need for traditional Product Activation Keys (PAKs). Key features include:
- Easy Activation: Establishes a pool of software licenses usable across the entire organization, eliminating the need for individual PAKs.
- License Flexibility: Licenses are not node-locked to hardware, allowing easy use and transfer of licenses as needed.
This model replaces manual processes with a centralized, scalable framework. It allows for dynamic license allocation and provides comprehensive oversight of both perpetual and subscription-based software across an entire organization.
Smart Accounts Overview and Administration
Smart Accounts & Virtual Accounts
The first step in using Smart Licensing requires the creation of a Smart Account for the customer. The Smart Account serves as a repository providing full visibility and access control to purchased Cisco software licenses and devices. When ordering Smart license-enabled products from Cisco Commerce Workspace (CCW), the order should be assigned to a Smart Account before submitting the order. If needed, the order can be assigned to a Smart Account after the order is placed, but it is recommended to do so upon placing the order, so the product can be easily accessed and activated.
There are three types of Smart Accounts
- Customer Smart Account
- Partner Holding Smart Account
- Limited Use Smart Account
Customer Smart Account
A Customer Smart Account is a centralized repository where Cisco Smart Licenses, some traditional licenses, Enterprise Agreements information, and Smart Enabled products are deposited and managed. It provides customers with full visibility and control over their Cisco software licenses, devices, and license agreements. All customers purchasing Smart products require a Customer Smart Account to consume their licenses. This account can be managed directly by the customer or by a designated channel partner or authorized party.
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 acting as a consumer and purchases 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 Account and Virtual Accounts
Upon creation of a Smart Account, a default Virtual Account is automatically created. Virtual Accounts are used to organize licenses and other assets assigned to the Smart Account by department, network, location, or other designation.
The Smart Account can be considered as a folder, and each Virtual Account as a sub-folder, all organized based on the needs of the business. It is easy to adjust the Smart and Virtual Account structure as the business grows and changes.
Smart Account User Roles
Smart Account Management requires at least one Cisco Administrator to be assigned to a company’s Smart Account. There are three Smart Account User roles designed to delegate different levels of access to a company’s licenses and assets. (Administrator, User and Viewer).
Smart Account Management
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 License Central and Cisco’s legacy platform, Cisco Smart Software Manager (SSM)
Smart Licensing Using Policy (SLP)
Smart Licensing Using Policy (SLP) is an enhanced version of Smart Licensing, designed to provide a licensing solution that does not interrupt network operations. With Smart Licensing Using Policy (SLP), preliminary steps such as registration or generation of keys are not required unless an enforced license is used, enabling immediate configuration and use of product features. Smart Licensing Using Policy (SLP) offers a consistent licensing experience across various Cisco devices running IOS XE software, with visibility and manageability through tools, telemetry, and product tagging. It also supports flexible reporting options to ensure compliance, accommodating direct internet connections, mediated access, or offline communication for air-gapped networks.
More information about the Smart Licensing Using Policy can be found on Cisco.com at: https://www.cisco.com/c/en/us/td/docs/routers/sl_using_policy/b-sl-using-policy/info_about.html
Cisco Classic Licenses
Cisco Classic licenses refer to the legacy licensing model where licenses are tied to specific devices using Product Activation Keys (PAKs). A Product Activation Key (PAK) is an 11-digit alphanumeric code provided by Cisco when you buy a traditional software license. By linking the software to your hardware, the PAK ensures that your license is valid and ready to use. This legacy model requires manual registration and installation of license files on each device, which can be administratively burdensome and lacks the flexibility and scalability of Smart Licensing. Customers and partners using Classic licenses are required to migrate to Smart Licensing or Smart Licensing Using Policy (SLP), which is the current mode of licensing. Migration involves upgrading to supported software versions that enable Smart Licensing Using Policy (SLP), after which license conversion occurs automatically. This migration simplifies license management by eliminating the need for device-specific keys and enabling centralized license oversight and reporting. Customers are encouraged to coordinate with Cisco or their partners to ensure a smooth transition to Smart Licensing Using Policy, which supports seamless day-zero operations and ongoing compliance management.
This migration to Smart Licensing Using Policy ensures a more flexible, scalable, and manageable licensing environment aligned with Cisco’s current licensing lifecycle and software management practices.