Growth billed after the fact
Under True Up, hardware support growth during the year is invoiced retroactively at the annual milestone. Growth that was not planned for arrives as a bill.
How Cisco prices an enterprise deal
Cisco sells most enterprise software as subscriptions, priced by device, by user or by suite tier depending on the product. Larger customers buy through the Enterprise Agreement, or EA, which puts software suites, support and services under one agreement with one renewal date.
An EA runs for three or five years, with a seven-year exception, and requires at least $100,000 in contract value. Software growth is handled through True Forward: growth is billed from each annual milestone onward, not retroactively.
Hardware is priced from list with negotiated discounts, and hardware support is priced separately. From July 26, 2026, hardware support in a new or renewed Services EA moves to True Up, which bills growth retroactively once a year, and requires at least $200,000 in annual contract value. Software support stays on True Forward.
Cisco’s fiscal year ends on the last Saturday in July, so fiscal 2027 closes on July 31, 2027. Its fourth quarter runs from May to late July.
What has changed recently
- Feb 2026
Hardware prices rise for memory costs
Cisco tells investors it has raised prices to cover rising memory costs and is revising contract terms with partners and customers. The increases apply to hardware, not software.
- Jul 2026
Hardware support moves to True Up
For new and renewed Services EA bookings, hardware support growth is billed retroactively at each annual milestone, and a $200,000 minimum annual contract value applies.
- Aug 2026
Price keeps driving growth
Cisco reports that hardware price increases added to fourth-quarter revenue growth and expects price to keep contributing through fiscal 2027.
What moves a Cisco renewal
A Cisco EA renewal is priced across software, hardware and support, and each moves on its own rules.
Software suitesCommitted across the enterprise, grown through True Forward
HardwareList prices raised in 2026 to cover memory costs
Hardware supportBilled on True Up from July 2026, with a $200K minimum
TermThree or five years, with pricing locked for the term
Each of these changes what the business actually pays over the term. Knowing which one is moving the number is the starting point.
Where a Cisco renewal gets expensive
Retired gear still counted
Hardware removed from the install base stays in the True Up calculation unless it is cleaned up within 90 days of delisting.
Hardware repriced for memory
Cisco raised hardware prices in 2026 to cover memory costs and revised contract terms around component pricing. How long a quote holds now matters more than it used to.
A higher bar for Services EA
Hardware support in Services EA now needs $200,000 in annual contract value. Estates below that line buy support another way, on different terms.
Deal IQ really knows how to maintain good relationships with vendors whilst achieving significant savings which we wouldn’t be able to achieve internally.
LIST PRICE, NOT YOUR PRICE
Higher memory costs raise Cisco’s list price. They don’t set your discount.
Cisco has raised hardware prices to cover memory costs, and the increase is easy to present as outside anyone’s control. The list price moved. What Cisco accepts against it is still negotiated, deal by deal.
What well-prepared buyers do before a Cisco renewal
Start 6 to 12 months out
An EA renewal that starts close to the end date runs on Cisco’s timeline.
Know your True Up exposure
Check whether hardware support renews into Services EA after July 26, 2026.
Clean up the install base
Delist retired hardware well inside the 90-day window.
Check the quote terms
Confirm how long a hardware quote holds and what can reprice before it ships.
Know where you fall in Cisco’s year
Cisco’s fiscal year ends in late July. May to July is when it closes its year.
DEAL IQ ON CISCO
We know how Cisco decides.
Cisco prices software, hardware and support on separate rules inside one agreement, and those rules changed in 2026. Our network of 350+ former vendor sales, pricing and deal desk leaders includes people who sold Cisco and know how those numbers are put together. We pair that with our own Cisco pricing data and a 32-factor assessment on every deal, then negotiate directly with Cisco or behind the scenes with your team.
Savings come from the price. Same products, same quantities, same scope.
DEAL IQ EXPERIENCE WITH CISCO
180+negotiations across Cisco, Splunk and Duo
$500M+in Cisco contract value negotiated, including Splunk and Duo
350+former vendor sales, pricing and deal desk leaders in our expert network, including people who sold Cisco
Frequently asked questions
What is a Cisco Enterprise Agreement?
A single agreement for Cisco software suites, with support and services available alongside, under one renewal date and one set of terms. It runs for three or five years, with a seven-year exception, and requires at least $100,000 in contract value.
What is Cisco True Forward?
Cisco’s model for software growth in an EA. Growth is billed from each annual milestone onward rather than retroactively.
What is changing with Cisco Services EA hardware support?
From July 26, 2026, hardware support in new and renewed Services EA bookings moves from True Forward to True Up. Growth is billed retroactively at each annual milestone, and a $200,000 minimum annual contract value applies. Software support stays on True Forward.
What happens to retired hardware under True Up?
Delisted hardware stays in the True Up calculation unless the install base is cleaned up within 90 days of the delisting.
Did Cisco raise prices in 2026?
Yes, on hardware. Cisco raised prices to cover rising memory costs and revised contract terms around component pricing. Its CEO described the increases on networking appliances as more nominal than on memory-heavy equipment. Software was not part of the increases.
When does Cisco’s fiscal year end?
On the last Saturday in July. Fiscal 2027 ends July 31, 2027, and the fourth quarter runs from May to late July.
Is Cisco’s “best and final” offer really final?
Best and final is a sales position, not a floor. It reflects what the account team expects you to accept, not the lowest price Cisco will approve.
Do we need to reduce our Cisco footprint to get a better price?
No. We negotiate the price of what you use. Products, devices and scope stay the same.
Has Deal IQ negotiated with Cisco before?
Yes. More than 180 negotiations across Cisco, Splunk and Duo, covering $500M+ in contract value, with a network that includes people who sold for Cisco.
How does Deal IQ charge for a Cisco negotiation?
No savings, no fee. We agree the starting price with you before we negotiate, and our fee is a share of the improvement against it.
DEAL IQ IN NUMBERS
$20B+contract value negotiated
3,000+negotiations
100Net Promoter Score
4.7/5client rating for delivering savings
$0fee if there are no savings
NPS and rating from independent client research by Plural Strategy Group, 2026.What our clients say →