Date:
2 Mar 2026
Author:
PREO AG
Used software
Examples: Microsoft and VMware: Used licences instead of expensive subscription models
Companies and public sector organisations using Microsoft or VMware software licences have recently been – and continue to be – affected by extensive licensing changes. In particular, the end-of-support deadlines for widely used Microsoft standard products such as Windows 10, Office 2016 and Office 2019, as well as various server products like Exchange or SQL, are forcing IT managers and Software Asset Managers to take a close look at their current and future licensing strategy.
Should organisations follow the vendor’s approach and migrate workloads partially or even entirely to the cloud? Or should certain areas continue to run on-premises, taking advantage of potential alternatives such as pre-owned software licences? This is the same question many VMware customers have faced since the fundamental licensing changes introduced after Broadcom’s acquisition – developments that led to a sharp increase in demand for pre-owned VMware licences in 2025.
In this blog post, we have compiled the key dates for product-specific licensing changes, using Microsoft and VMware as examples, and explain the benefits of pre-owned software licences as a smart and significantly more cost-effective alternative to cloud-based subscription models.
Example: Microsoft – More Cloud, Shorter Life Cycles, Higher Costs
Microsoft is continuing to pursue its strategy towards cloud and subscription models, which is particularly evident in the effective shortening of life cycles for traditional Office versions:
Office 2016 and Office 2019 have been out of support since 14 October 2025. Office LTSC 2021 and Office 2021 will follow on 13 October 2026. Notably, there will be no Extended Support programme for Office 2021. The LTSC version is subject to the Fixed Lifecycle Policy, meaning it has a fixed end date and no subsequent Extended Security Updates (ESU). This increases the pressure on in-house IT teams to switch to Microsoft 365 or to migrate to new LTSC versions at shorter intervals, which is typically associated with rising project and licensing costs.
Licensing pressure will continue into 2026: for example, Extended Support for Microsoft Dynamics CRM 2016 ended on 13 January. For SQL Server 2016, Extended Support will end on 14 July 2026, after which only a one-year ESU extension will be available.
At the very beginning of 2027, on 12 January, Extended Support for Windows Server 2016 will also come to an end. Here too, many organisations already face the need to take action with regard to their future licensing strategy.
Is your organisation’s Microsoft licence portfolio affected by these changes? Would you prefer to continue operating fully or partially on-premises rather than migrating to the cloud? The licensing experts at PREO will be happy to advise you on the changes outlined above, as well as on further upcoming licensing developments and the potential use of pre-owned Microsoft licences.
VMware Licensing under Broadcom: From Perpetual to Subscription-Only
Since Broadcom’s acquisition of VMware, the licensing model has been radically restructured: perpetual licences and their support renewals were discontinued at the beginning of 2024, meaning that new purchases are now only available as time-limited subscriptions. Instead of individual products, solutions such as VMware Cloud Foundation and vSphere Foundation are now offered exclusively as bundled subscriptions. For smaller environments, vSphere Standard and Essentials Plus remain available under a subscription model.
To increase the pressure to act, existing customers who continue to use their perpetual VMware licences will no longer receive support once their current maintenance agreements expire. In addition, the shift in licensing has been accompanied by price increases, leading more and more IT decision-makers to ask themselves: stay or go? However, finding the right answer is strategically complex.
At least for a transitional period, there is a pragmatic approach that allows organisations to continue operating their proven software architecture while initially avoiding a sharp rise in licensing costs and new dependencies: the use of pre-owned VMware licences.
The licensing experts at PREO will be pleased to advise you personally on the use and benefits of pre-owned VMware licences, including the proven third-party support provided by our partner Origina.
Instead of Costly Subscription Models: Why Pre-Owned Software Licences Are Worth It
Within the European Union, the purchase and sale of pre-owned software has been fully legal under certain conditions for more than 12 years, following landmark rulings by the highest courts. For widely used standard products from major vendors such as Microsoft or VMware, pre-owned software therefore represents an attractive alternative to new licensing, which often pushes organisations and public authorities towards cloud-based subscription models.
Against this backdrop, the use of pre-owned volume licences for on-premises operation within an organisation’s own data centre offers several key advantages:
1. Cost savings
Pre-owned licences are often significantly cheaper than the latest licence version under an ongoing subscription model. Savings of up to 70 per cent can be achieved by comparison.
2. Planning certainty through a one-off investment
Perpetual licences can be accounted for as CapEx, reducing ongoing subscription costs that are often difficult to forecast.
3. Extended use of established platforms
Pre-owned licences for existing Microsoft or VMware products enable consistent environments and help to avoid fragmented system landscapes.
4. Closing licensing gaps & audit compliance
Missing licences can be added cost-effectively without having to resort to expensive cloud-based versions.
5. Contribution to sustainability and ESG objectives
Extending the use of existing software indirectly reduces hardware-related resource consumption, which can be an important component of an organisation’s sustainability strategy.
Good to Know: Only Perpetual Licences Can Be Resold
Another advantage of using pre-owned software in an on-premises environment is the opportunity for software remarketing. Software licences that are no longer required or are lying dormant can be resold on the secondary software market. The proceeds generated in this way relieve pressure on the organisation’s IT budget and create scope for new investments, many of which are urgently needed.
At present, companies are benefiting from an attractive market environment for selling pre-owned licences profitably. Demand remains consistently high, particularly for widely used standard software such as Office 2021 and 2024, while supply is currently stagnating or even declining.
Are you looking for a reputable and experienced B2B partner to purchase pre-owned software licences from your existing portfolio? The PREO licensing experts will be pleased to provide you with a non-binding purchase offer.
Advantages of Pre-Owned Software Licences from PREO
As one of Europe’s leading B2B resellers of pre-owned software, PREO provides legally compliant pre-owned licences from leading vendors such as Microsoft, Adobe, Oracle, VMware, Foxit and ZWSoft to businesses, organisations and public authorities. More than 5,000 customers already benefit from:
- Significant savings on ongoing licensing costs of up to 70 per cent compared to the respective new version.
- 100 per cent legally compliant and audit-proof licence acquisition, with full transparency at every stage of the process, including complete documentation via the PREO “Easy Compliance” licence portal.
- Personalised advice on all aspects of licence transactions and on integrating pre-owned software licences into traditional network infrastructures or hybrid cloud models.
- Greater sustainability in IT through the promotion of an active circular economy and the reduction of the organisation’s carbon footprint.
- Expertise gained from numerous reference projects successfully delivered for well-known companies across a wide range of industries and sectors.
