What should you check before reselling used software?
Whether you're a CIO or an IT Asset Manager, digital transformation today means optimizing your budget. Especially since the arrival of the cloud, nearly 79% of companies admit to wasting a quarter of their expenditure on obsolete or unused solutions. IT decision-makers are now focusing on the on-premise application base: perpetual software licenses that are ageing or being left behind... and reselling them, once forbidden by the publishers, can now bring in a lot of money. Those who have exploited this legal opportunity have done double duty. In addition to optimizing their existing application assets, they were able to boost their amortization capacity and use the profits generated by the sale for strategic investments. If the financial opportunity is worth it and opens up a market that appears to be an Eldorado, a resale operation nevertheless requires anticipation and verification of essential details.
The 3 major advantages of reselling used software
Do you want to resell your surplus or unwanted software licenses on the second-hand market? Here are the 3 main benefits:
1- You stay close to your needs and limit waste
35%. That's the average share of a company's IT budget. Not counting the many hidden costs: maintenance, security, updates, integrated options, etc. The bill can then reach several tens or even hundreds of thousands of euros! Reselling used software licenses will allow you to rationalize your software assets and optimize your performance.
2- you increase your cash flow to support the transformation of your company with relevance
Over-licensing", i.e. too many inactive licenses, inevitably generates maintenance costs. When you commit to a resale of used softwareIf you have a license, you are required to assign all rights and obligations associated with the license, including the maintenance contract if it is in effect. An opportunity to reduce software maintenance costs by up to 50%.
3- You generate cash to invest in the cloud
Cloud investments have become essential for most companies. 70% of them plan to increase their remote storage services by 2024. SaaS will then represent nearly 39% of the market. With pressure from publishers and users, it is in the best interest of companies to move to a subscription model as soon as possible. The money made from reselling used software in over-licensing will allow them to amortize this transition to as a service solutions. And to feed a virtuous circle.
What are the key points to check before reselling?
"The very strong economic impact of the second-hand market makes it a strategic subject for companies (...) The second-hand licence must become a reflex" underlines a large French company in the telecommunications sector.
While it promises many benefits, the resale of used software is subject to strict eligibility conditions. Anticipate with rigor the regulatory aspects.
Reselling used software: the 5 conditions to be eligible
Here are the 5 conditions to engage in the resale of your used licenses.
1- Your licenses must be perpetual and subscriptions are excluded
2- Your licenses initially acquired in batch must be resold in batch
3- Your licenses must have been acquired, downloaded or installed from their origin in a European Union country
4- You must provide proof of full ownership of your licenses (authenticity and traceability documents)
5- You must remove the copy of the software sold by uninstalling it or deleting it from your servers and/or computers.
Your checklist for reselling
Softcorner encourages you to use its platform as a monitoring tool to create a large pipe of offers and save time. We are also committed to guaranteeing you anonymity of negotiations, secure payment and insurance once the transaction is finalized.
On your side, remember to provide the buyer with the following documents:
proof of purchase: initial purchase invoice and upgrade invoices explicitly mentioning the resold license
proof of renewal: if the version sold is different from the one mentioned on the property deed, you must provide the maintenance invoices
the licence agreement and any subsequent amendment to its content