The UK’s first pre-owned / 2nd hand software licensing market is being opened up by discount-licensing.com, who is pushing the envelope of the software licensing market by adhering to Microsoft’s own transfer terms & conditions. The clause permits disused or unwanted software licence agreements to be transferred from insolvent (or even downsizing active companies) back into private sector businesses. The result for business customers is simple: significantly reduced Microsoft licensing costs.
It is estimated that UK organisations stand to benefit by £millions annual savings with the introduction of this new concept, while insolvency practitioners can realise a new asset for their creditors. Even downsizing solvent companies can benefit by divesting an asset that now has a residual value attached.
Historically, licensing (permits to use software on a PC) would be transferred from one active company to another through acquisitions, mergers, divestments etc. This new concept appears to have been overlooked due to the hidden heterogeneous relationship between the licence and the software media CD. Indeed, these two items need to be treated as separate assets and while there are underlying restrictions within Microsoft’s transfer conditions, the ability to transfer a licence from one company to another is completely legal as long as the letters of the law are adhered to.
Being the first and currently, the only legally compliant reseller of its kind, discount-licensing.com guarantees supplying Microsoft Application and Server based software licensing solutions at prices based typically on discounts of 20-50% below any authorised Microsoft UK reseller. All types of Microsoft Application (MS Office XP etc.) and Server (Windows Server 2000, Cals etc.) based licensing is available, while Operating system licensing (such as Windows XP) are NOT due to the transfer restrictions. The range of licences available from insolvent companies will obviously vary with the OLDER/PREVIOUS versions (NT / 2000 / 2002) being more readily available than the latest 2003+ versions. There is an increasing necessity for IT department’s to sweat their assets and most businesses can continue running their operations just as efficiently with older versions. Therefore, the frustration surrounding the rule that businesses are obligated to upgrade or purchase the most up to date versions at a premium price is now coming to an end (in pretty much the same way the first 2nd hand car market began). Note that media CD’s for discontinued software is readily available.
Some business users have long since lobbied for greater simplification and value from licensing regimes as well as less frequent upgrades requirements. Users are perfectly able to operate their business centres using existing software solutions and knowing that a pre-owned licence alternative now exists should eradicate the myth that companies need to upgrade each time additional software / licensing is required.
Microsoft was initially approached by Disclic over 14 months ago and has been invaluable in assisting Disclic with its investigations, which have unfolded this new £multi-million pre-owned / 2nd hand licensing market within the UK. Microsoft’s cooperation with Disclic will see their own customers receive much greater value from licensing, while creditors of insolvent companies will realise an intangible asset that has never previously been realised. Clearly, both will need to learn to co-exist with this new licensing concept as Microsoft will continue to thrive, while new age licence brokers such as Discount-Licensing.com will pose only a minimal threat to the software giant.