During my research for the Top five IT finance and asset management issues article, about how to finance IT purchases, I came across two companies specialising in second-user systems.
It’s surprising how many people actually buy second-user hardware – and why shouldn’t you, when the cost is significantly cheaper than the full price of a new product, and you are offered a guarantee. It certainly makes sense for enterprise hardware like servers, network equipment and storage.
But what is really interesting, is that there is also a burgeoning market for second user software licences. Discount-Licensing is a specialist in this space. I spoke to the managing director, Noel Unwin abut concerns over software piracy and whether you can actually sell pre-owned software licences. Apparently there is a clause in MS licences that allow for transfers.
To comply with licence audits, he says:
“We provide documentation including a sale of purchase agreement, unique licence number, volume licence key, a copy of the licence agreement, and a Microsoft Notice of Potential Transfer form, which the customer signs and sends to Microsoft.”
This means you can save 25% on MS Exchange – and if you have too many licences, they can be resold to Discount-Licensing. Now what is really interesting about this is that Discount-Licensing also buys and sells SAP licences. According to Unwin, businesses can buy pre-owned SAP up to 90% cheaper than the cost of a new licence. Equally, organisations that are downsizing and divesting, can resell unused SAP licences.
Unfortunately Unwin says it is too hard to do the same thing with Oracle. Shame.