1. Cisco Unified Communications Licensing Enhancements
John Sunzeri, Product Manager
June 3, 2010 1

2. Agenda Cisco User Connect Licensing What is it
Benefits to you & customers
Pricing for Specific Applications
Migrating to User Connect Licensing
3 & 3 Upgrade Offer
User Connect Licensing and Video
Cisco Unified Workspace Licensing
Enhancements
Price changes
Promotion
Resources and Promotion

3. Cisco User Connect Licensing
WHAT
HOW
WHEN
Available as products in Unified Communications System Release 8.0 become available
Note: Cisco Unified Communications Manager (UCM) will offer UCL beginning with UCM 7.1.5
Method of purchasing a la carte (individual products) by licensing per user
Most Unified Communications products
Prices change to include software and licensing per user: IP telephony, mobility, conferencing, presence, clients and messaging
Customers can migrate from basic DLU to User Connect Licensing
Combine User Connect Licensing with Unified Workspace Licensing in the same cluster
Count number of users and public space / analog devices
WHAT is User Connect Licensing?
Cisco is making a shift to license products and applications by user when ordered individually. There will be no need to quote server software, DLUs, ports, options, etc. All will convert to a single User Connect License.
It will be available for most Cisco Unified Communications products and we’ll walk through which products will not shift to this new method.
This change will result in licensing price changes for IP telephony, mobility, conferencing, presence, clients and messaging because the software will be included and won’t need to be ordered separately.
Customers can migrate from basic DLU to UCL at a very small price
User Connect Licensing can be combined with CUWL and the mixed cluster restriction disappears. Customers can now have both Unified Communications products that have been ordered individually mixed with Cisco Unified Workspace Licensing – all in the same cluster.
HOW will User Connect Licensing work?
Simply count the number of users and also the number of public space or analog devices
This will begin…..
The earliest date User Connect Licensing will be available will be February 16, 2010 with Cisco Unified Communications Manager All other products in the Cisco Unified Communications System Release 8.0 will have User Connect Licensing upon product ship date. So you will experience a 3-month phase roll out.
It will also be available for products in the Cisco Unified Communications System Release 3

4. Products Not Available for User Connect Licensing
Not moving to user-based license:
Cisco Unified Contact Center Enterprise
Cisco Unified Customer Voice Portal
Cisco Unified IP IVR
Cisco Unified Videoconferencing
Express products – Unified Communications Manager Express, Cisco Unity Express, etc. (Cisco Unified Contact Center Express already follows a user-based licensing model)

5. Partner Benefits Improves ease of doing business with Cisco
Easier to order the customer solution - no need to quote server software, DLUs, ports, options
Reduces operational costs
Easier implementation, management and configuration of licenses
Increases opportunities
Easier to reach and talk with new decision makers

6. Customer Benefits Flexible Simple Increased Productivity
Offer the right applications to the right users to maximize value
Flexible
Easier to acquire and add applications as business need dictates
Ensures consistent pricing across the portfolio
Simple
Increased Productivity
Less time to track and manage licenses
Flexible – offer the right applications to the right users to maximize investment. Customer feels like they will be able to use the applications they buy for their users.
Increased productivity – takes away the time to understand product licensing making it easier and faster to track and manage licensing.

7. Things to Know
Cisco Unified Communications System Release 8.0 will only be available with User Connect Licensing
Both a la carte and subscription (UCSS) upgrades are supported in User Connect Licensing
A la carte upgrades are now based on the User Connect Licenses the customer owns
Mostly, Unified Communications Software Subscription will be much more economical way for customer to plan and budget for upgrades
Previously, upgrades to several applications including Cisco Unified Communications Manager were based only on server licensing.

8. License Enforcement
Leverages the existing (pre-8.0) license enforcement mechanisms
You order User Connect Licenses. We ship and enforce DLUs.
Select those most likely used in first 12 months after deployment
Future - products will become “user-aware.” At that point, additional enforcement will happen. If you fail to comply with the rules today, the customer may be impacted in the future.

9. Pricing for Specific Applications9

10. IP Telephony and User Connect Licensing
IP Telephony licensing model shifting from device licensing (DLU) to User Connect Licensing (UCL)
Enhanced IP User list price: $210/user
Basic IP User list price: $125/user
Cisco Unified Communications Manager Business Edition User: $235/user
Public Space, Analog Users (same as CUWL):
Public Space User list price: $150/user
Analog User list price: $40/user
All users in Cisco Unified Communications Manager will now have combination of above licensing and/or CUWL licenses. 10

11. More on IP Telephony Users…
Basic IP User is intended for analog->IP migrations or other users requiring few IPT capabilities.
License limited to 6901, 6911 models
Enhanced IP User is principle license for IPT user and is not limited by phone model. License for single Cisco IPT or third party phone of any model.
Adjunct User License can be added to Enhanced IP User license for additional endpoint, softclient or mobile phone. List price $85/user. 11

12. Messaging and User Connect Licensing
Unity Connection list price: $75/user
Unity list price: $100/user
Includes EVERYTHING: unlimited ports, high availability/failover, languages, integrations, etc.
Simply count required mailboxes and multiply by price point
Price points facilitate Unity Connection as the lead messaging product 12

13. Conferencing and User Connect Licensing
Conferencing model shifting entirely from concurrent users (ports) to user-based (profiles)
Audio user list price: $80/user
Video user list price (in addition to audio): $30/user
Web conferencing separate in 8.0 (WebEx and on-premise). Not part of base Unified MeetingPlace 8.0 product
Port ratio for Cisco Unified MeetingPlace 8.0: 1 port for every 10 users, and WebEx Meeting Center is 4 internal ports and 1 external port for every 100 users for the period of 36 months.
Port ratio for Cisco Unified MeetingPlace 7.0: 1 port for every 10 users for audio and video, and 1 port for every 20 users of web conferencing
Simply count how many people need to schedule meeting and order a user for each 13

14. Presence, Clients and User Connect Licensing
Presence is $60/user
No server license or DLUs required for presence -- $60 is all included
Client pricing is unchanged– it was already user based
A client is treated like a phone
If it is a first phone, the enhanced IP phone license covers it
If it is a second phone, it is an adjunct device 14

15. Mobility and User Connect Licensing
Mobile communicator client list price is $50/user
Includes the client and server license and access rights
Dual mode phones are $150/user ($200 for full UC)
Single Number Reach (SNR) included in Enhanced and Basic User licenses (does not require additional adjunct licenses) 15

16. Migrations to User Connect Licensing16

17. Case 1 - Migrating From DLU to UCL + CUWL
Scenario: Customer migrating from Unified Communications Manager to UCL + CUWL STD cluster. No current UCSS.
Migration Path: Order appropriate migration part numbers, mixing CUWL and UCL as desired, and mandatory UCSS/ESW on all users.
May take advantage of promo pricing in this case for UCL users.
Migration Path
Order:
- 250 User Connect License Migration part numbers (promo price)
- 250 CUWL STD Migration part numbers
50 Public Space/Analog Migration part numbers UCSS on all users
UCM 8.0
UCM 7.1(4) or earlier
- 250 User Connect Licenses
- 250 CUWL STD Licenses
- 50 Public Space, Analog Devices
(550 total users)
- 500 IP Phones
- 50 Public Space, Analog devices
(550 total users) 17

18. Case 2 – Migrate From Multiple CUWL + DLU clusters TO Single CUWL + UCL Cluster
Order:
- New software version via Product Upgrade Tool (PUT)
CUWL on UCM 7.1(4)
AND
CUWL + UCL on UCM 8.0
Order:
User Connect Licensing Migration part numbers, OR CUWL Migration SKU’s as desired
Public Space, Analog Migration part number
UCSS on all part number
500 CUWL Licenses
500 User Connect Licenses
- 50 Public Space, Analog Devices
(1050 total users)
DLU on UCM 6.x
- 500 CUWL Users (CUWL cluster)
500 IP Phones with DLU’s (DLU cluster)
- 50 Public Space, Analog devices
(1050 total users) 18

19. Case 3 – Customers with existing UCSS
Order software copies via Product Upgrade Tool (PUT)
UCSS was already user based
Customers upgrade to UCL based on UCSS
Upgrade Path
UCM 8.0
UCM 7.1(4) or earlier
500 IP Phones, 2000 DLU
(500 users)
500 User Connect Licenses
Order upgrade via PUT

20. Case 4 – Customers without UCSS, option 1
Buy user-based upgrade
Pay full upgrade price for each user, typically 50% of new user cost
Now migrated to UCL on the new version
Migration Path
UCM 8.0
UCM 7.1(4) or earlier
Order 500 User Connect License Migration part number
500 IP Phones, 2000 DLU
(500 users)
500 User Connect Licenses

21. Case 4 – Customers without UCSS, option 2
Buy discounted user based upgrade (with 3 & 3 Upgrade offer)
Required to purchase 3 year UCSS contract at the same time
Now migrated to UCL on the new version
ALWAYS cheaper than the full priced upgrade, plus provides future version upgrades
Migration Path
UCM 8.0
UCM 7.1(4) or earlier
Order 500 User Connect License Migration discounted part number + UCSS
500 IP Phones, 2000 DLU
(500 users)
500 User Connect Licenses

22. 3 & 3 Upgrade Offer
What:
Upgrade to 8.0 using a new bundled package offer of $3/user* for license, and 3 year Unified Communications Software Subscription** (UCSS) at standard pricing
“3 & 3 Upgrade” offer is available for these select Cisco Unified Communications 8.0 products:
- Cisco Unified Communications Manager and Business Edition
- Cisco Unity Connection and Cisco Unity to Cisco Unity Connection 8.0 (“3 & 3 Upgrade” offer does not apply to Cisco Unity 8.0)
- Cisco Unified Presence
- Cisco Emergency Responder
When:
Available as Unified Communications 8.0 products ship
Offer ends when each individual 8.0 product above reaches End of Sale
*Exception: $6 per user for Cisco Unified Communications Manager Business Edition migration pricing where user licensing includes Unity Connection ** Cisco Unified Communications Essential Operate Service (ESW) is required with UCSS 22

23. 3 & 3 Upgrade Offer (cont’d)
How to position the offer:
- Always lead with CUWL migration
- CUWL includes version upgrade at no additional charge
- CUWL migration can be mixed with 3 & 3 Upgrade and User Connect License
- Every upgrade discussion is an opportunity to move any or all of the customer’s users to CUWL
- If customers will not migrate to CUWL, then “3 & 3 Upgrade” should be the second option. Customers always have the option to migrate to CUWL at a later time.
- Third option is to purchase upgrade software (if offered) priced at ~50% of User Connect Licenses 23

24. “3 & 3 Upgrade” vs. User Connect License Upgrade Value Comparison
$10,200 in savings!
PLUS you receive 3 years of UCSS, which provides you access to major software upgrades as they become available
“3 & 3 Upgrade” is clearly the cost-effective method of upgrading to 8.0
UCSS provides even greater value if upgrading more than once during a 3 year period. Cost savings result in $27,500!
UCL Pricing for 100 Users*
UC Product
UCL 8.0 Upgrade Price
Cisco UCM
$105/user
Cisco Unified Presence
$30/user
Cisco Unity to Unity Connection 8.0
$38/user
Total Cost
$17,300
3 & 3 Upgrade Offer for 100 Users*
UC Product
$3 / User Upgrade Offer Price
3 year UCSS Price
Cisco UCM
$3/user
$26/user
Cisco Unified Presence
$16/user
Cisco Unity to Unity Connection 8.0
$20/user
$900 + $6200
Total Cost
$7,100
3 and 3 Migration” requires a minimum 3 year term UCSS.  Exceptions are allowed for government entities which by law cannot commit services beyond one year (1 year UCSS contracts allowed)
*This assumes the customer already has Cisco Unified Communications Essential Operate Service (ESW)
UCM – Unified Communications Manager 24

25. User Connect Licensing and Video25

26. Changes to Video Licensing
‘Video only’ deployments of Unified Communications Manager will remain
Increasingly video deployments will co-exist with customers’ production voice deployments
Video endpoints will be licensed as users
Several license types for video only and mixed voice/video clusters
Proliferation of video in customer UC deployments demands support for and interoperability among multiple types of video endpoints. 26

27. Video User Connect Licensing
Video Desktop User list price: $295/user
For any video device on user’s desktop.*
Video Telepresence Single Screen User list price: $650/user
For a single screen conference room unit.*
Video Telepresence Multi-Screen User list price: $1,100/user
For a multi-screen conference room unit.*
Telepresence Only Starter Bundle list price $14,750
Includes 2 Cisco Unified Communications Manager nodes, 50 Video Desktop Users.
Video Desktop User list price: $295/user
This is license type for any video device (NOT softclient like CUVA, CUPC) which sits on user’s desktop. Pedestal model is prime example.
Added in lieu of Basic or Enhanced IP User License.
Video Telepresence Single Screen User list price: $650/user
This is license type for a single screen conference room unit.
Video Telepresence Multi-Screen User list price: $1,100/user
This is license type for a multi-screen conference room unit.
Telepresence Only Starter Bundle list price $14,750
Includes 2 Cisco Unified Communications Manager nodes, 50 Video Desktop Users.
Use this for Telepresence only deployments. Add appropriate Telepresence User licenses from above list.
* Added in lieu of Basic or Enhanced IP User License. 27

28. Enhancements to Cisco Unified Workspace Licensing

29. Enhancements Addition Edition
Cisco WebEx Meeting Center (external) and Cisco WebEx Node for MCS (internal)
Professional Edition
4 internal and 1 external port per 100 users for 3-years license term
Cisco Unified Communications Manager, Session Management Edition
1 session for every 5 users
Unified MeetingPlace 7.0: 1 port for every 10 users for audio and video, and 1 port for every 20 users of web conferencing.
Unified MeetingPlace 8.0 is 1 port for every 10 users
Cisco Intercompany Media Engine
All Editions
(Business, Entry, Standard, Professional)
Cisco WebEx Meeting Center and Cisco WebEx Node for MCS
Customers have the option to add more ports, if needed
Session Management Edition
Includes one session of Cisco Unified Communications Manager, Session Management Edition for every 5 users.
Session Management Edition delivers TCO savings today on a platform that routes and controls all communications traffic.
Interconnect your PBXs together
Interconnect those PBXs to SIP Trunking.
Interconnect those PBXs to the Mobility, Recording services.
Interconnect those PBXs to the other businesses (Cisco IME)
Interconnect those PBXs to Social Networking & Web Apps (Web2.0 & ECP)
Get as many video and audio ports in CUWL Professional Edition. Consistent pricing across applications for Essential Operate Service
Cisco Intercompany Media Engine
All existing CUWL customers get access to this capability at no additional charge
Provides a revolutionary way for organizations to extend their Cisco Unified Communications experience to their business partners or customers, delivering feature-rich interoperability via boundaryless collaboration as well as cost savings.

30. Price Changes Net $50 increase over 3 years gives you:
CUWL Edition
Price Change
Professional Edition
Increase from $425 to $500 per user
Professional Edition – Unified Communications Software Subscription
Decrease from $125 to $100 for 3-year term
Standard, Business, Entry
No change
Net $50 increase over 3 years gives you:
More than twice as much audio and video conferencing
More web conferencing with a choice A. Cisco Unified MeetingPlace web conferencing, or B. Cisco WebEx Web Conferencing for 3-years

31. WebEx Node for MCS WebEx with Unified MeetingPlace Option
Performance
Bandwidth
Policy, Security
Internal/VPN
External
Cisco WebEx Collaboration Cloud
What is it
The WebEx Node for MCS is a software component that is deployed on-premises with Cisco Unified MeetingPlace 8.0. The WebEx Node for MCS extends the Cisco WebEx Collaboration Cloud into an organization's onsite network infrastructure. The option is always deployed with Unified MeetingPlace 8.0 and a WebEx Meetings Service Contract
How it works
Internal web conferencing traffic is routed to the WebEx Node for MCS and remains in-house, rather than having every connection going to the WebEx Collaboration Cloud. Internal meeting participants automatically connect to the local WebEx Node for MCS, which generates a single data stream to the WebEx Collaboration Cloud. External attendees connect directly to the WebEx Collaboration Cloud.
Benefits:
This helps 1) reduce the load traversing the proxy server/firewall infrastructure to reduce WAN bandwidth and 2)reduces web conferencing traffic latency because internal web traffic only travels back and forth to/from the WebEx Node. This delivers a better user experience by improving performance.
Policy/Security - The WebEx Node for MCS also enables internal-only meetings (on a meeting by meeting basis) where web conferencing traffic and recordings stay on-premises. Meeting initiation still requires a connection to the cloud. This capability complements the robust security capabilities of WebEx meetings.
Cost savings – Save money by 1) reducing WAN bandwidth needs, 2) bringing audio conferencing on-premises (Unified MeetingPlace) and 3) lowering WebEx services fees as WebEx Meeting port pricing is now structured so internal ports are less expensive than external ports
How do I buy it:
CUWL - The WebEx Node for MCS software is included in CUWL Professional. In fact, the only way you can get WebEx as part of CUWL is to deploy WebEx Meetings with Unified MeetingPlace and the WebEx Node for MCS.
A la carte – You can buy the WebEx Node for MCS software as an option ($25,000) if you have Unified MeetingPlace 8.0 and a WebEx Service contract.
Extra architectural point that probably does not need to be shared with Partners on Feb 2
The WebEx Node for MCS can also automatically manage meeting capacity. If a single WebEx Node for MCS reaches its capacity limit, then  it will automatically overflow additional meeting participants to other WebEx Nodes or to the WebEx Collaboration Cloud.
WebEx Node
for MCS
WAN
MeetingPlace Audio/Video 31

32. Benefits More flexible than ever!
Combine User Connect Licensing with Unified Workspace Licensing
No separate cluster when ordering Unified Workspace Licensing
User Connect License migration options are available 32

33. Things to Know
Must purchase Cisco WebEx Node for MCS to get Cisco WebEx Meeting Center
Can order more Cisco WebEx internal and external ports
Must purchase Unified Communications Software Subscription (UCSS) for all users when mixing CUWL+ User Connect Licensing
Unlimited ports - audio conferencing now entirely user based
Messaging failover now included in UCL. No longer an extra “option”.

34. Existing Professional Edition Users
Request additional audio and video ports –
Can access Cisco WebEx Meeting Center and Cisco WebEx Node for MCS for duration of UCSS contract
CUWL Professional future-proofs the customer’s investment in Cisco conferencing
Take advantage of Cisco Intercompany Media Engine 34

35. Resources and Promotion

36. Getting Started Review resources available
Contact existing CUWL users about new enhancements
Ensure your organization can support the new licensing model
To continue to evolve your practice, we recommend the following next steps:
Use the sales and technical resources, websites, tools, demos, available to not only learn about the changes but use the information to have conversations with new customers.
Contact your existing customers to let them know about the new functionality they now receive so they can best deliver these additional productivity features to their customers.
Ensure your organization can support the new licensing model.
Sales cycle
Deployment
Management
Support and Migration
Start selling more UC today!
Start selling today!

37. Promotions CUWL Migrate NOW promotion 3 & 3 Upgrade Offer
- Provides 50% discount on select CUWL migrations license SKU’s to close deals to migrate installed base. This is a price change in the price tool and discount will be reflected in all incoming orders.
- Available in all theaters.
- Effective September 8, 2009 to July 31, 2010
3 & 3 Upgrade Offer
No matter where you are on your collaboration journey, we can assist you.
Our services range from assessment, planning and design, to implementation, support and training. If you are simply looking for the next steps to transition from a current TDM PBX architecture, to implementing TelePresence, we offer various collaboration solution design capabilities to help your staff.
Or perhaps this is a corporate initiative as it is at Cisco. Our teams can assist you with an open ended discovery session to hear what your business objectives are, and begin a collaborative strategy that helps you meet those goals. 37 37

38. Resources
User Connect Licensing
Cisco Unified Workspace Licensing
Licensing Partner Community
Partner Alias