Since 2012 Reselling Software has been started by a number of brokers. Though little has been done to reassure owners of surplus software licenses and shelfware that, yes, indeed, licenses can be marketed and sold on. The European Court has restated the legality of the resale of software in Europe in its latest judgment: even where the license agreements signed up to by the licensee declared that the software was non-assignable and only for that particular licensee’s internal business purposes. But the court confirmed that the principle does not extend to software transferred on back-up discs.
Software vendors do not have not been very active in mentioning the resale option to customers. On the other side they cannot be too dismissive: they are constrained by competition (anti-trust) laws in seeking to inhibit the market in indirect ways. This can include discriminating against their customers, refusing support or seeking higher prices from those using pre-owned software. The jeopardy for them is a finding of abuse, damages and fines of up to 10% of their group’s global turnover.
An interesting perspective on support for secondary software being a potential growth market: Support costs on software generally exceed, over time, the initial license fees paid. This means that, if there were a new user of redundant software, there is the possibility of extending the vendor’s customer base and increasing, rather than damaging, its income.
Link to full article by Robin fry
“Reduce, Re-use, Recycle” are set as the Waste Hierarchy..
Yes recycle the things you can recycle. BUT instead of seeing recycling as ‘job done’ and feeling like we’ve done our bit to save the planet, we should all be looking a little bit deeper than that.
We should be looking to Refuse, Reduce and Re-use before we Recycle:
- Refusing to buy the things we don’t need – being more thoughtful and deliberate about the (new) things we buy.
- Reducing our demand for (new) things – do we really need to upgrade?
- Re-using the things we already have: Including Repair, so it’s also about fixing, maintaining and cherishing the things we already have.
Link to article: Why I Think We Should All Recycle LESS For Recycle Week
Aftermarkets are particularly important in the market of technical equipment. The downstream market for maintenance and support of both hardware and software is profitable and particularly coveted by OEM’s, often as a means to recoup their investments in research and development. In many cases these markets are contested by independent service organisations (“ISOs”), which frequently come into conflict with the manufacturers.
Read the full article that gives an interesting overview
By Martin Thompson
Has your organization explored the secondary software market? Buying and selling used software can free up much needed IT budgets and reduce compliance and audit headaches.
Software is an asset and should be treated and managed as such, like other business assets (in certain conditions).
Click the link below for access to a comprehensive whitepaper on the risks and opportunities with secondary software.
The paper has been compiled by CIGREF, a network for large companies in France and SOFTCORNER, a marketplace for secondary software and FIE supporter.
Thank you to CIGREF and SOFTCORNER for sharing their paper.
More about CIGREF and SOFTCORNER:
In his blog called “Is the Cloud all huff and puff? IBM and Oracle certainly hope so!“, John O’Shea shares his views on the question: Is the cloud purely for nice-to-have niche or new applications, but not for legacy, mission-critical functions?
How do you look at the Strategy of these Giants with running business models and shareholders expectations? Please follow the analysis of John here!