Date:
21 Nov 2022
Author:
PREO AG
Used software
How you benefit from the advantages of second-hand software and avoid risks
Whether it is a medium-sized company, a large enterprise, an administration or an organisation - the interest in trading with second-hand software and the resulting advantages is continuously growing. Especially in sectors which are under considerable cost pressure not only in times of crisis, such as health care, tourism, supply and disposal or public administrations, are increasingly looking for operational efficiency potentials. The argument for the use of second-hand software is persuasive here with licence cost savings of up to 70 percent with product quality as good as new, significantly lower training costs and less internal support.
But not every offer is legally un-objectionable. Time and again, dubious-looking offers can be found on numerous online marketplaces, where it is not clear whether it is an original licensed product of the software manufacturer, what licensing status the product has and whether all the necessary information on the rights chain is available. In this blog post, we show you what you should always look out for in second-hand software providers and what distinguishes reputable from dubious ones.
Vendors of used software - how to distinguish serious from dubious ones
The market for second-hand software is now estimated at around 1.4 billion euros in Europe alone. Since the landmark ruling of the European Court of Justice on the legal use of second-hand software licences in 2012, this has continuously gained momentum. In the meantime, there are a large number of providers competing for existing and new customers, especially in the business customer sector, while private customers tend to find what they are looking for directly on relevant online marketplaces. This brings us to the first quality criterion of personal advice, by which you can recognise a reputable provider of second-hand software. But there are a few more. We have therefore compiled the most important questions for B2B customers in the form of a checklist, the answers to which will help you to assess in advance whether you are on the safe side when choosing a provider.
PREO checklist ‘vendors of used software’ - 8 questions for your peace of mind
If you answer at least seven of the eight following questions of our checklist with "Yes", you can usually assume that you have chosen a serious vendor of pre-owned software:
- Does the provider specialise in trading with used software in the business customer sector and does he offer the entire asset management, i.e. in addition to the sale also the purchase of used software licences, the legal examination as well as the documentation?
- Does the company offer you a personal licence consultation with detailed legal examination around the software licences you want or need or even better your entire licence requirements?
- Does the provider disclose on its own initiative from which sources it obtains the licences offered?
- Does the provider usually obtain its used software licences from stocks of the initial licensor?
- Has the provider already proven its expertise in a wide range of SAM projects and, for example, successfully managed large-scale projects with thousands of employees and different locations?
- Does the company offer you special customer service, for example its own licensing portal, which you can access at any time in the event of a vendor audit, thus saving time and resources?
- Does the company offer you additional securities, such as comprehensive asset liability insurance?
- Does the provider work with the latest technical security standards and, for example, encrypt and store all proof of ownership using blockchain technology?
If you are not able to answer all the questions on our checklist "vendors of used software" with certainty, we recommend that you also get personal advice from one of our experts in an initial, non-binding meeting.
PREO - Integrity and security in the trade with used software
The PREO checklist "Vendors of used software" is particularly suitable for companies that are dealing with the use of used software for the first time and are planning to integrate used software into their asset management in the long term. In addition, the checklist " Vendors used software" is helpful for all those who still have reservations or have already had negative experiences, as well as problems with a software vendor audit and want to be on the safe side in the future. As one of the pioneers in the trade with used software in Germany and Europe, we fulfil all criteria and go far beyond the conventional industry standards in terms of legal security and compliance around the purchase or sale of used software licences.
Our long-standing customers from medium-sized and large companies appreciate the transparency and information security regarding the origin of the used software as well as the completeness of all proofs required for audit security. For this reason we offer software licenses to our customers with the requisite information from the initial licensee. In addition to the information on all previous owners by name, the type of licence agreement and the contract numbers, we offer a written declaration of all owners in the rights chain that they have properly uninstalled the used software. You can find out more about the legal requirements here.
Waste disposal service provider Nehlsen consistently relies on PREO's expertise
"Today I recommend that every company take advantage of the efficiencies of software remarketing." Axel Plaßmeier, Head of Systems and Networks, has been completely convinced of the advantages of buying and selling second-hand software for several years - especially when it comes to standardising, supplementing and harmonising the software landscape. But he and his superiors were initially still cautious about the alternative form of procurement. "There were prejudices due to media reports," explains Plaßmeier. But the interest remained, especially because with second-hand software the financial framework could be kept. "When we looked closely at all the vendors, it became clear that PREO Software AG was the best partner for us. They are the only ones who assurea transparent licence transfer."
Nehlsen AG is one of the top ten waste management companies in Germany.
The successful company with headquarters in Bremen is owner-managed and offers modern services in the field of waste disposal, contracting and safety for an intact environment.
Conclusion: Examine providers of used software thoroughly
We know from experience how important a trusting and reliable cooperation is for such a sensitive issue as the trade in second-hand software licences. Not every provider has the legal competence and experience in the field of national and international licensing law and can advise you in the best possible way. As is often the case, the devil is in the detail. Use the PREO checklist "Vendors of used software" with the most important questions to be on the safe side when choosing your vendor. This way, you can avoid expensive re-licensing or even penalties in the event of a manufacturer audit, such as those from Microsoft, Adobe and Co. Especially for medium-sized businesses, large companies or larger organisations and administrations with several thousand employees, the resulting financial damage can reach incalculable proportions.
