HP Networking

[#1]

By Sreeram Krishnamachari, Global Product Line Manager, HP Networking

Firmware licensing is a topic that is very dear to my heart as well as to several of our customers. That’s why I would like to spend time on the subject in this blog. 
 

Why switch firmware licenses were used?

Licensing of firmware is usually done to provide tiered SW features to customers based on their needs. For example, a network manager wants to run only Layer 2 at the edge of a campus networks now—but might in the future need to run some Layer 3 protocols—would buy a switch that comes with base Layer 2 firmware and upgrade to a Layer 3 license when required. In the past, HP also offered these licenses on some of our products to provide flexibility. We usually had one license SKU per product family.

Disadvantages of using firmware licenses

You told us that firmware licenses come with a host of costs and challenges. This creates more headaches instead of making life easier for network managers:

1. Procurement cost – You need to pay a premium not only for a switch hardware that is capable of supporting feature expansion but also pay for the license when the procurement happens. The cost penalty is particularly acute when trying to stack a set of switches, as you have to procure a license for every switch in the stack in order for the stack to work as a single entity.
    
2. Additional support costs – You need support contracts that are required to get support on the features that are included as part of these firmware licenses.
   
   
3. The hassle and cost of auditing these licenses every year to meet regulatory requirements – You can easily see the direct and indirect costs can grow exponentially for auditing these licenses on a yearly basis for a large enterprise with thousands of branches and switches.

HP’s approach for wired switch products

Based on your feedback, all the HP switches introduced to market after Nov 2010 ship with premium license built in. In other words, today, when you buy any of these new switches from us, all the firmware features are already enabled (including the advanced L3 to L7 features) at no premium. Don’t believe me? Check out super high performance modular switch in the HP 10500 Switch Series or industry-leading mesh-stacking solution in the HP 3800 Switch Series.

              

Competitor’s approach

It is noteworthy that the other leading vendor in the market has taken the opposite route by adding more layers of licenses to their already super complex firmware licensing and OS. There are not only more license layers for features but even licenses for enabling connectivity options like 10G.

If you just look at a single family of 3750X from Cisco, it has 18 different firmware license SKUs that I could count on the datasheet and it gets lot more complicated when you examine modular switches! (On a lighter note, check out the “Dilbert moment” cartoon.)

So, as a customer, what should you do?

1. Understand the obvious and hidden costs with firmware licenses.
   
2. When making procurement decisions, ask clearly what you get and what you don’t get with the base product and license.
   
3. Say NO to solutions that could potentially require future expensive firmware license upgrades.

Let me know your thoughts on this topic!

>> Learn more about HP Networking products and solutions.
>> My recent blog: Why our networking customers keep me motivated. (Thank you!)

>> Follow HP Networking on Twitter | Join HPN LinkedIn Community | Like us HPN Facebook

[#2]

Is the date correct?

"Based on your feedback, all HP wired switch products shipping since last November, 2010 ship with all the features built in. In other words, when you buy a switch from us, all the firmware features are already enabled (including the advanced L3 to L7 features) at no premium.

Maybe it's November, 2011?

[#3]

Hi John,

Thanks for checking out the blog!

To clarify, we introduced the new 5400 switch bundles and chassis as of last November - November, 2010 which came with all the premium features. Since then, all the platforms that came subsequent to that, we are introducing with all premium features built in. For example, the new L3 stackable 3800 was introduced this year with premium features.

Hope that clarifies.

Happy Monday.

Cheers,

_Sreeram

[#4]

So for those of us that own 5400 or 3500 series switches, will you be providing us with a premium license? Based on point number 3 from your blog, we should have said NO to these switches.

[#5]

Hi Robert,

Thanks for your comments.

We did explore the option of just including the license to existing SKUs. However, there are accounting and revenue recognition legal issues with it. We couldn't legally add features without changing the J number or the SKU. I am no accountant and do not understand all the implications there but to include premium features into the product, we had to legally introduce new SKUs.

Regarding your specific issue, please work with your account rep to explore the options. I do hope you see value in the go-forward direction which is I am trying to address in this blog.

If you have any further questions, please free to email me at sreeram.krishnamachari@hp.com

Thanks

_Sreeram