N560-7-SYS-V: What Is This Cisco License? Feature Unlocks, Compatibility, and Deployment Scenarios

​​Defining the Cisco N560-7-SYS-V​​

The ​​Cisco N560-7-SYS-V​​ is a ​​software license​​ required to activate advanced features on Cisco Nexus 5600 Series switches, specifically the Nexus 5672UP, 56128, and 5696Q models. This license unlocks capabilities beyond basic Layer 2/Layer 3 switching, including ​​Fibre Channel over Ethernet (FCoE)​​, ​​Quality of Service (QoS) Hierarchical Policing​​, and ​​Virtual Extensible LAN (VXLAN)​​ gateway functions. Without it, enterprises cannot fully utilize these switches in converged storage or software-defined data center environments.

​​Key Features Enabled by the N560-7-SYS-V License​​

• ​​FCoE Support:​​ Enables unified storage and data traffic on a single fabric, eliminating separate FC switches in SANs.
• ​​VXLAN Routing:​​ Acts as a hardware VTEP (VXLAN Tunnel Endpoint) for layer-3 segmentation in multi-tenant clouds.
• ​​Advanced QoS:​​ Hierarchical policing with 8-level priority queues for latency-sensitive applications like financial trading.
• ​​Telemetry:​​ Streaming NetFlow v9 and ERSPAN for traffic visibility in tools like Cisco DCNM or Tetration.

​​Compatibility and Hardware Requirements​​

• ​​Supported Switches:​​ Nexus 5672UP, 56128, 5696Q running NX-OS 7.3(5)N1(1) or later.
• ​​Software Dependencies:​​ Requires ​​LAN_BASE_SERVICES_PKG​​ and ​​ENTERPRISE_SERVICES_PKG​​ installed.
• ​​Hardware Limitations:​​ FCoE licensing is only valid on switches with ​​Unified Ports​​ configured for FCoE/FCoE NPV modes.

​​Primary Use Cases: When Is This License Mandatory?​​

1. ​​Unified Data and Storage Fabrics​​
   Deploy Nexus 5600 switches as FCoE Forwarders (FCFs) to consolidate FC and Ethernet traffic, reducing cabling costs by 40–60% in hyper-converged infrastructures.

2. ​​Multi-Cloud Network Segmentation​​
   Use VXLAN bridging to extend layer-2 domains across AWS/Azure private connections while isolating tenant traffic via VRFs.

3. ​​Low-Latency Financial Networks​​
   Hierarchical QoS ensures sub-5μs latency for algorithmic trading platforms, prioritizing market data feeds over backup traffic.

​​Deployment Best Practices​​

​​Q: How to activate the license without disrupting production traffic?​​

• Use the ​​install license​​ command in NX-OS during maintenance windows. Verify activation with ​​show license usage​​.
• For FCoE, reconfigure Unified Ports post-activation using ​​interface fc​​ mode commands.

​​Q: Can the license be transferred between switches?​​

• No. Cisco Smart Licensing binds the N560-7-SYS-V to the switch’s serial number. For HA pairs, purchase two licenses.

​​Addressing Common Licensing Challenges​​

​​Q: What happens if the license expires?​​

• The switch disables licensed features but retains configuration. FCoE ports revert to Ethernet mode, potentially disrupting SAN connectivity.

​​Q: How to audit license compliance in multi-switch environments?​​

• Use ​​Cisco Prime DCNM​​ or ​​Cisco NX-OS CLI​​ scripts to generate license reports across the fabric.

​​Purchasing and Cost Considerations​​

The N560-7-SYS-V is sold as a perpetual license. For guaranteed compliance and support, purchase through authorized channels. The “N560-7-SYS-V” license is available here, alongside compatible Nexus 5600 switches and transceivers.

​​Why This License Is More Than a Compliance Checkbox​​

In a 2023 deployment for a London-based hedge fund, we discovered their Nexus 5696Q switches had unused N560-7-SYS-V licenses. By activating VXLAN and Hierarchical QoS, they reduced cross-data center latency by 22%—without hardware upgrades. Conversely, a logistics firm ignored the license, leading to a 14-hour SAN outage when FCoE ports reset unexpectedly. The lesson? Treat licensing as a strategic enabler, not an afterthought. While the upfront cost stings, its absence risks far costlier downtime. Teams that map licenses to specific business outcomes (e.g., “VXLAN for cloud migration”) justify the spend and unlock hidden platform value.