Cisco Price Rise 7 November: What Australian CIOs Should Do

Cisco list prices change on 7 November. If you have an open Cisco quote, a renewal coming up or a refresh in planning, now is the time to check what you are actually paying for.

Cisco has told its partners that list prices on networking and security software, along with selected hardware, will change from 7 November 2026. It follows earlier pricing and contract changes this year, as vendors pass on rising component and memory costs.

For Australian buyers paying in AUD, the change is already showing up in quotes.

What we are seeing in Australian quotes

In one Cisco DNA licensing example we reviewed, a licence priced at around AUD $22,000 is moving to around AUD $23,000. That is an increase of about 4.5%, for exactly the same entitlement.

On a single line item, $1,000 looks small. Across an estate, it isn't. A 4.5% increase on a $2 million annual Cisco spend across licences, support and hardware is $90,000 of unbudgeted cost, before any project has moved forward.

The exact impact depends on the product, price list and your purchasing agreement. But the question every CIO should ask is simple:

If the entitlement hasn't changed, what is the extra money buying?

Why the timing hurts

Most network teams have already done the hard work: quotes obtained, business cases approved, budgets locked. A price change before the order is placed sends that work back to finance for re-approval.

And licensing is rarely the only line in the budget. The same budget usually carries:

• hardware purchases and replacements
• software licences and subscriptions
• maintenance and support contracts
• spares and replacement parts
• expansion and refresh projects

A rise in one category squeezes all the others.

What to do before 7 November

1. Check every open quote. Note the expiry dates and confirm whether they fall under Cisco's standard price protection, which Cisco says it will maintain. Final pricing still depends on your negotiated discounts and contract terms.
2. Compare like with like. Confirm the licence, entitlements and contract terms are identical to what you priced originally. A higher price does not mean more functionality.
3. Question the refresh. Ask whether the technical requirement has actually changed, or whether the refresh is being driven by the vendor's lifecycle rather than your network's needs.
4. Price the alternatives. Get a second option before signing, just as you would for any other major procurement.

The alternatives most teams never price

Keep good hardware running for longer. Network hardware loses value quickly, but it doesn't stop working on the vendor's schedule. Many switches and routers have years of reliable service left.

Buy pre-owned where it fits. Quality pre-owned Cisco equipment can meet the same technical requirement for significantly less than new, depending on model and availability. It must be checked properly for compatibility, configuration, licensing, security and provenance. The goal isn't the cheapest box; it's the most commercially sensible way to meet the requirement.

Use third-party maintenance. For eligible equipment, independent maintenance can replace an OEM support contract, often at a lower cost. Compare response times, parts availability and contract terms carefully.

Recover the real value of what you retire. Most organisations assume they get fair value back for old equipment. Very few test it the way they would test any other procurement.

What happens when you test it

A healthcare organisation recently asked us to compare our approach with the proposals it had received for its retiring IT equipment. The result: Recirc IT returned 50 times the value offered by both the vendor and a recycling provider.

The lesson isn't that every project will deliver 50x. It's that most organisations never check, and the gap can be enormous.

The three questions buyers ask about pre-owned

• Will it be supported? That depends on the product and provider, and should be confirmed before purchase.
• Is maintenance available? For eligible equipment, yes, through third-party maintenance providers with defined service levels.
• Can the supplier prove chain of custody? It must. Ask where the equipment came from, how it was handled and what documentation proves its history.

Once these are answered, you can make a fair comparison between new and pre-owned.

The bottom line

Price rises will keep coming. Some will be justified. Many won't reflect any change in what you receive.

When you're told a quote is no longer valid and more budget is needed, you should be able to answer three things: what changed, what the extra spend delivers, and whether there's another way to meet the same requirement.

Get a second opinion before you sign

Send us your Cisco quote before 7 November. We'll benchmark it against pre-owned hardware, third-party maintenance and value recovery from your existing equipment, and show you where the savings are.

Contact Recirc IT on +61 489 187 136.