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Building New Network: Cisco IOS Licensing Implications

Posted on 2009-07-12
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OK, I am trying to get some input from people who have ACTUAL experience with the situation or can speak authoritatively about it.  Just linking to cisco.com's various pages on relicensing of used equipment & IOS EULAs won't earn you any points.  

Here is my situation.  I'm a network admin working in a large non-profit IT environment.  The user base isn't very large (40-50) but the infrastructure and the applications required are very diverse and transcends many areas of IT from plan vanilla small office environment all the way to SANs, POS, and remote sites.  It's got it all.  

Currently our network infrastructure is in disarray.  It is a hodgepode of undocumented & low grade cabling combined with not enough capacity.  The switching is basically Dell powerconnect stuff.  It works, but it's reached its limit and it's holding our progress back which is why I want to move to a 100% Cisco switched & routed environment.  I spent the last few months getting my CCNA so I could have some idea of what I am doing (not that CCNA means you know anything.)

To the point...  I got a puny budget of $30,000 to do the whole thing.  The end goal is to have an environment that "just works" and can be supported by third parties in the event on-site staffing is incompentent.  So the way I see it, there is no other way to play this (if I want Cisco and can't get any more money) than to go with *USED* equipment on ebay.  

I have my network diagramed and it calls for about 6 C3750-48T switches and 2 C3750G-24T switches.  I also want to put a 2821 router in front of it all for my WAN. I figure I can get the 48T switches for $1250/ea and the 24T gigabit switches for $2000/ea.  That will get me started and put me close to a decent Enterprise Campus model... BUT

Now I am learning that used equipment technically doesn't come with the license even if that when it was new it actually had one.  It's like the license dies upon transfer.  And to make matters worse it seems it's basically $2,000 or more to relicense it plus if I want smartnet I have to get it inspected.

So, I am asking what is the deal with used equipment and how do people who buy it end up using it in their environment?  It is just de facto understood in the industry that you just do this and nothing happens to you unless you are a big company and Cisco wants to make a point?  

My plan originally called for getting SmartNet on everything, is that part basically dead since I can't even get to the point of buying it until I've paid the license and inspection fees?

Please don't just write something to the effect of "yes, n00b, you have to pay big money to get Cisco" or "Looks like you solved your own problem."  I'm asking for a bit of HELPFUL commentary on my situation plus maybe even add something I've missed or didn't think of.  That's how points will be awarded.

Thanks!





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Question by:Colebert
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Expert Comment

by:Istvan Kalmar
ID: 24835160
HI,

If you buy used cisco devices you able to buy smartnet or shared support! If the previous owner bought it you have to wait 90 days to the end of his contrat, or directly contact the contrator to resign!

The smartnet support by cisco, zjr shared support supported by you cisco intergrator!

If the product EOF you not able to buy smartnet or shared support!

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by:atlas_shuddered
ID: 24836728
If you are going to buy used, stay away from eBay.  Go with Cisco Certified Refurbished.  Warranties are transferable, SmartNET is available, etc.  You'll need to find a reseller for your area.  You can research this at this link: http://tools.cisco.com/WWChannels/LOCATR/openBasicSearch.do

Additionally, since you are a non-profit, be sure to contact Cisco directly, even better, all of your vendors.  Manufacturers are usually very kind to non-profits, especially if there is a press release in it for them.
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Author Comment

by:Colebert
ID: 24837215
I have been to their refurbished clearinghouse.  Their refurb equipment is more expensive than discounted new stuff, at least 28xx series routers vs Provantage.  

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by:Magim_IT
ID: 24837674

Hi,
 
Are you a non-profit organisation? If YES You may get special prices from Cisco
You can speak to Cisco and try split payment option
http://www.cisco.com/cisco/web/solutions/small_business/programs_promotions/index.html

If you have low budget then you can use low cost Cisco switches, here is the link
http://www.cisco.com/cisco/web/solutions/small_business/products/routers_switches/index.html

Do you really need 2821, how much WAN bandwidth do you have?
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by:Colebert
ID: 24837724
WAN1: Comcast (18mbps down / 2mbps up)
WAN2: P2P Wireless (3mbps down / 3mbps up)

We are eventually going to move to business fiber optics since we have a cell tower we lease to AT&T and they have run fiber to it and are going to cut as a sweetheart deal.  The Comcast will be 50mbps down and 10mbps up by the end of the year.

Still looking for commentary on how used switches work with licensing and what the general practice is with them.
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by:Magim_IT
ID: 24838031
Hi,
I will suggest to go for 2851 to fulfil your current requirment. For 50mbps download you surly have to upgrade again.
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by:Istvan Kalmar
ID: 24838081
HI,

In my opinion better way to bux ASA-5505 with Security plus feature, it is more cheaper than you buy 2851, and the routing performance is enough for you!
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by:atlas_shuddered
ID: 24843243
Colebert

You will need to go to a reseller.  Going directly to Cisco, you will always get stiffed unless you have a multi-million dollar project.  As a rule of thumb, resellers will discount from list by 25-45%.

As far as the switches go, they will fall into the same type of SLA as any of the other equipment, which is wholly dependent on where you purchase from.  You get it from anyone other than a certified reseller and you won't be able to get support.  Additionally, you run the risk of getting hold of counterfeit equipment which definitely doesn't work out to your favor.
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StrifeJester earned 500 total points
ID: 25627309
There is a big difference between used Cisco and Refurbished.  We do all of our purchasing through www.wdpi.com  They sell Cisco equipment that evan can carry smartnet, which includes configuration assisstance.  Their prices are substantially less, for example we just picked up a 2950 swithc for 80 bucks.  This one we didn't put SmartNET on but most of our equipment does.  So i would stay away from the ebay route, if its for you CCNA lab or something to monkey with you are ok.  As far as the licensing they are all sold with a license and an IOS. The license allows the origianl purchaser to upgrade the IOS but once it is sold whatever is on it technically has to stay on it.  We deal with wdpi probably once a month, especially lately.  The thing about Cisco gear is a lot of people dump it when it goes EoL.  Cisco still supports that gear for at least 3 years in most cases. You mentioned the number of users you ahve but nothing along the line of switching capacity and total servers, Gather up all of this information and give WDPI a call and they can get some great pricing that will come with smartnet.  I have quite a few Cisco rotuers and switches and in the 2 years since I came into my current posistion I have not had one piece of hardware fail from wdpi.  I have actually had retail equipment fail but nothing from them.  I hope this helps and isn't too late I was just notified about the question today.  If you are looking for any other information just ask.
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