This document describes how to configure Smart Licensing on Cisco ISE.
Cisco recommends that you have knowledge of these topics:
This document is not restricted to specific software and hardware versions.
The information in this document was created from the devices in a specific lab environment. All of the devices used in this document started with a cleared (default) configuration. If your network is live, ensure that you understand the potential impact of any command.

Beginning with Cisco ISE 3.0, Smart Licensing is required. Cisco Smart Licensing simplifies license procurement, deployment, and management by enabling devices to self-register and report usage in these ways:
The Device Admin license (PID: L-ISE-TACACS-ND=) activates TACACS+ services on a Policy Service Node (PSN). Each PSN that uses TACACS+ requires its own Device Admin license. TACACS+ device administration does not count toward endpoint usage and imposes no limit on the number of network devices you can manage. An essential license is not needed to manage Network Access Devices (NADs) such as routers and switches.

Note: The diagram uses traditional license terminologies, but these also apply to the new tier licenses referenced throughout the documentation.
The number of active endpoints can differ from the licenses used because each endpoint can have multiple sessions. License consumption is based on the number of active sessions, not just the number of endpoints. For example, a system with 10 active endpoints with multiple sessions can use more licenses.
Ensure that accounting is enabled on both the wireless access points and the switch. License consumption is determined by the Start - Stop messages sent from the AAA client to the AAA server.
Cisco ISE uses specific rules in order to manage sessions in Monitoring and Troubleshooting (MnT), relying on accounting messages from Network Access Devices (NADs). Here is how Cisco ISE processes sessions based on these accounting messages:
Evaluation Licenses are activated by default when you install or upgrade to Cisco ISE Release 3.x and later versions. The Evaluation License is active for 90 days, and you have access to all the Cisco ISE features during this time. Cisco ISE is considered to be in Evaluation Mode when the Evaluation License is in use. The top-right corner of the Cisco ISE administration portal displays a message with the number of days that are left in the Evaluation Mode.

Tier Licenses replace the Base, Apex, and Plus licenses used in releases earlier than release 3.x. Tier Licenses include three licenses — Essentials, Advantage, and Premier. If you currently have Base, Apex, or Plus licenses, use the CSSM in order to convert them into the new license types.
A Device Administration license allows you to use TACACS services on a Policy Service node. In a high-availability standalone deployment, a Device Administration license permits you to use TACACS services on a single Policy Service node in the high-availability pair. On Cisco ISE, it is defined as Device Admin and on the Smart license portal, it is defined as Maximum number of nodes entitled to TACACS+ transactions.
Cisco ISE 3.x onwards comes with a new form of VM license which is the VM Common license. If you are using traditional VM licenses then they must be converted to VM common licenses.
For information on license types and conversion, refer to the links:
Smart Licensing Connection Method Change:
Cisco ISE 3.4 removed support for the Transport Gateway connection method used in Smart Licensing. If you were using Transport Gateway for smart licensing, you must update the connection method before upgrading to 3.4. If not updated, the system automatically switches to Direct HTTPS during upgrade, but you can change it anytime after the upgrade.
Licensing Visibility Improvements in 3.5:
Cisco ISE 3.5 enhances license tracking for better visibility and accuracy. The license tiers and features remain the same, but license usage is now aligned with peak active endpoints. Enforcement is not yet active in 3.5; instead, non-disruptive consumption alerts notify if usage exceeds licensed limits
For the introduction of Cisco ISE 3.1, you have three options available in order to enable Smart Licensing.
Smart Software Licensing Reservation is easily used and efficiently with a single token registration. The licenses that you purchase are maintained in a centralized database called the CSSM. Log in to the CSSM portal in order to easily track the endpoint licenses that are available to you and consumption statistics. In this mode, Cisco ISE is required to connect with CSSM either directly (Direct HTTPS) or via Proxy in order to exchange the consumption and Compliance information. The new option SSM On-Prem allows air-gapped ISE in order to utilize the features of CSSM in the form of a local Server hosted as an On-Prem (Satellite) server.
Specific License Reservation (SLR) allows customers in highly secure networks in order to use Smart Licensing (and Smart licenses) without communicating the license information. SLR allows reservation of specific licenses, including add-on licenses. SLR does not require Cisco ISE in order to connect to CSSM and allows Cisco ISE to consume the licenses present in the Smart Account till they reach expiry.
Step 1. Browse to Administration > System > Licensing:

Step 2. Choose Smart Software Licensing Reservation in License Type and paste the Registration Token in the Registration Details. Choose the Applicable Tier as required. The process differs slightly between Direct HTTPS and HTTPS Proxy.
Step 3. For Direct HTTPS, choose the Connection Method as Direct HTTPS and click Register:

Step 4. In order to ensure that HTTPS Proxy is preconfigured, navigate to Administration > System > Settings.
Add proxy details > Host, user ID, and Password:

Step 5. Back on the Cisco ISE Licensing page, choose Connection Method as HTTPS Proxy and ensure that the configured Proxy is seen under the HTTPS Proxy section. Click Register:

Finally, Cisco ISE is now registered to CSSM and an entry for this ISE node can be found in the Product Instances in the Virtual Account (from where the token was generated).
This configuration requires an SSM On-Prem (Satellite) Server to be deployed in the environment. Once deployed and connected, the Satellite server acts as a local Licensing Server allowing Cisco ISE to perform the Licensing transactions without reaching out to CSSM over the Internet. Satellite servers can in turn sync with CSSM either in online or offline mode (using .yml files). More details about the Satellite server are available in the Cisco Smart Software Manager On-Prem Data Sheet . A quick start guide to installing the On-Prem server is available in the SSM_On-Prem_8_Quick_Start_Guide .
These steps assume that the Satellite Server is configured and a Virtual Account on CSSM containing Cisco ISE Licenses is added to the Satellite Server. Steps to perform the same can be traced in the Smart_Software_Manager_On-Prem_8-202006_Installation_Guide.
Step 1. Log in to the Satellite Server and choose the Smart Licensing Option:

Step 2. From the inventory, generate a token and copy the token value. Back on Cisco ISE, choose Smart Software Licensing Reservation and as Connection Method as SSM On-Prem server:

Step 3. The field SSM On-Prem Server Host is taken from the hostname configured on the On-Prem Server. The same can be confirmed from the On-Prem Server Admin Workspace > Security > Certificates > Host Common Name:

Step 4. Once the hostname is confirmed, add it to Cisco ISE under the SSM On-Prem server Host and click Register. After successful registration, Cisco ISE appears in the list of Product Instances added to the Virtual Account on the Satellite Server.
Step 1. Browse to Administration > System > Licensingas shown in the image:

Step 2. For the License Type, choose SLR and then click Generate Code. Copy the reservation code generated as this is required by the CSSM in order to generate an Authorization Code:

Step 3. On CSSM, choose the Virtual Account which contains Cisco ISE Licenses (Essential, Advantage, Premier, VM, TACACS+). Under the Licenses section, choose:
L
License Reservation.
Step 4. Enter the Authorized Code copied from Cisco ISE and click Next in order to choose the Reserve a specific license o ption. Depending upon the available licenses, specify the counts to be reserved for Cisco ISE and click Next. Note that Tier Licenses and VM Licenses allow subsitution that is Upper-Level licenses can be used in order to fulfill requests for lower level licenses. Check the Tier Model Cisco ISE 3.x Licensing Model .

Step 5. Review and download the generated Authorization code using the Download as File option. Return to Cisco ISE and click Upload SLR License Key in order to upload the file. The expiry date of the licenses on Cisco ISE reflects the original expiry date of licenses on the Smart Account.
Step 1. Click Return Reservation and copy the Reservation code provided and keep it safe.
Step 2. Browse to Product Instances for the Virtual Account to which Cisco ISE is added and search for ISE using its serial number. Click Actions > Remove, enter the code copied in Step 1. and click Return Product Reservation. This returns the reserved licenses to the Virtual Account.
In order to troubleshoot registration errors, start by verifying that there are no communication issues with the Smart Licensing Cloud (https://tools.cisco.com/ or https://smartreceiver.cisco.com/). Several factors can disrupt the connection between Cisco ISE and the Smart Licensing Cloud, including:
Use HTTPS API calls directly from the browser in order to know the number of licenses being consumed on Cisco ISE:
In Cisco ISE 3.1 or later, you can use OpenAPI. You must navigate to Administration > Settings > API Settings. API calls are used to get more data about the Licensing state.

Tip: Ensure the ERS and Open API services are enabled in Cisco ISE. You can verify this by navigating to Administration > Settings > API Settings > API Service Settings. You must activate these services before accessing the API calls through the URL if these services are not enabled.

| Revision | Publish Date | Comments |
|---|---|---|
3.0 |
23-Apr-2026
|
Formatting, langauge, links. |
1.0 |
03-Oct-2024
|
Initial Release |