Three questions and answers: Used software for companies – Is it worth it?

Licenses for applications and server software are expensive. But why don't more companies buy their licenses second-hand? We spoke to Thomas Huth, himself a provider of used software, about the advantages – and what professional customers in particular need to consider with regard to support.

Im Interview: Thomas Huth

Thomas Huth ist Gründer und Geschäftsführer von Capefoxx, einem rechtssicheren Anbieter für gebrauchte Softwarelösungen und Lizenzmanagement. Mit über 20 Jahren Erfahrung in dieser Branche verfügt er über eine umfassende Expertise. Huth hatte eine maßgebliche Rolle in wegweisenden Gerichtsverfahren gegen Unternehmen wie Adobe und Oracle, welches zu einem rechtsweisenden Urteil des EuGH führte und den Handel mit gebrauchten Lizenzen ermöglichte.

Buying used software licenses – promises to be cheaper, but also more expensive. How much money can a typical medium-sized company really save as a result?

The great thing is that a right of use cannot wear out. In addition, the quality of used software versions is absolutely identical to that of new licenses directly from the manufacturer. If companies purchase the latest version of a license, they save at least 30 percent. If an older version is sufficient, costs can even be reduced by up to 70 or 80 percent. Logically, however, these versions are only available on the second-hand market, as the manufacturers only offer the latest versions. Furthermore, the purchase of used software licenses is in no way associated with more effort – This is a myth that persists. The license transfer process is streamlined and transparent, as is the documentation. Buying new software licenses is ultimately no less time-consuming.

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Support from the developers is just as important to most companies as the software itself. What needs to be considered with used licenses?

Depending on the manufacturer, there are different options for providing support for used software licenses. However, this should always be discussed with experts. Microsoft, for example, offers its software with a fixed support lifecycle that is publicly accessible. During this period, security patches are provided – regardless of who owns the software. This means that anyone using used software receives support from the manufacturer within the originally defined life cycle. This is different for Oracle, IBM and VMware. To ensure support for this software too, there are companies such as Origina. They provide possible security patches for used IBM and VMware software in order to ensure support for these programs too. The level of support is almost equivalent and significantly cheaper than direct support from the manufacturer. This business segment is now just as established as the trade in used software.

How do you see the future for used software licenses in the cloud era?

Everyone is talking about the cloud and manufacturers' sales teams are now essentially incentivized to sell cloud licenses. Nevertheless, the demand for purchased licenses is still huge. Many want to remain in their own environment or are even obliged to do so for regulatory or data protection reasons. However, some simply do not want to become completely dependent on the software manufacturer, where the cost policy is often opaque. As the saying goes: Never change a running system – is a motto that many companies follow. And anyone wondering how long on-premises licenses will really survive in the age of the cloud: Microsoft only recently decided to offer its Office 2024 as a purchase license again. A step that the tech giant would hardly have dared to take without demand. This means that used licenses will probably remain an alternative for a few (decades) to come.

Mr. Huth, thank you very much for your answers!

In the "Three questions and answers" series, iX aims to get to the heart of today's IT challenges – regardless of whether it's the user's view in front of the PC, the manager's view or the everyday life of an administrator. Do you have any suggestions from your day-to-day work or that of your users? Whose tips on which topic would you like to read in a nutshell? Then please write to us or leave a comment in the forum.

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