What are the clear advantages of used software?

Interview marketSTEEL with Tobias Lander, Director Sales Relicense AG

marketSTEEL: Microsoft products are part of everyday office life. Companies can buy Microsoft licenses affordable via you. How?

Lander: Affordable in this case means we offer companies licenses from the secondary market. This used software has no functional limitations but offers a higher saving potential than new licenses. As a first step, we assess companies to find out in which area the use of used software makes sense. Even initial price information can help them to identify the savings potential and raise awareness within the company.

The procurement process for used Microsoft licenses is essentially the same as for new licenses from this manufacturer. There are clear regulations on the part of the legislator as to how the sale of used software must proceed. To this end, we have been working closely with external auditors and legal experts for some time in order to comply with the statutory regulations. We provide companies with insight into the current legal situation, the legal and organizational conditions to be fulfilled, but also into the manufacturer's and audit company's recommendations for action.

A decision for or against used software is of a fundamental nature and should not be made on its own. We recommend involving colleagues from the legal department, purchasing, IT and, if necessary, other departments in the decision-making process. In this way, legal and organizational questions can be clarified in advance.

marketSTEEL: Is the purchase and sale of used software a legal grey area?

Lander:The clear answer is no! Anyone considering buying or selling used software does not have to worry: In the states of the European Union, it is basically legal to resell software licenses once they have been acquired.

The legal basis for this is the exhaustion doctrine. It states, for example, that a software manufacturer - in this case Microsoft - only has the distribution right for its products once. So if the software was sold to a customer and paid for by him, this right is "exhausted" and the software may be resold by the buyer.

In recent years, trade has also been confirmed by the European Court of Justice and the German Federal Court of Justice. The permissibility of the sale of used software licenses - also from volume licenses - cannot therefore be questioned. DAX companies have long since discovered this procurement channel for themselves.

marketSTEEL: What do I as a company have to consider when deciding on used software?

Lander: Microsoft's licensing model is already quite complex for new on-premises software. This complexity increases with the use of used licenses. In fact, the license terms that correspond to the program version that the company acquires apply in each case. This means that both the software version and the license version can also be older. This complexity should not deter. But because of it, a specially trained specialist should always be involved in the development of a license business. In addition, it makes sense to analyze in advance which licenses are required for the planned software environment in the company.

If the company has decided on second licenses, it is extremely important that the rights chain of the licenses can be traced back. Companies should not rely on a mere assurance. They should rather have a complete, verifiable documentation submitted to them. Transparency is the most important thing here! Relicense provides its customers with all data and information about the license history with the delivery of the licenses. And not just when it’s needed.

marketSTEEL: What are the clear advantages of used software? Why should I invest in it as a company?

Lander: The most convincing advantage is of course the significant savings potential that can be achieved with second licenses. This can reduce license costs by up to 70 percent, which dramatically reduces IT costs. By purchasing second-hand licenses, companies are also able to align their licensing strategy exactly to their needs and long-term IT planning. In concrete terms, they can procure the precise software version they really need for their IT environment. It doesn't always have to be the latest version.

Relicense works with companies to develop cost-effective alternative licensing scenarios. One example is hybrid cloud scenarios with a combination of Microsoft cloud subscriptions and perpetual local - in this case used - licenses. They save up to 60 percent of the total cost compared to licensing with Microsoft Office 365 E3. The realized savings free up a budget that can be invested in new technologies.

About Relicense AG

Relicense AG, founded in 2008, is one of Europe's leading second-hand providers of software licenses and advises companies on all aspects of software asset management.