Software Remarketing for Companies – Five Reasons That Pay Off

How to Relieve Your IT Budget by Selling Used Software Licences

Navigating Economic Upheaval: The Strategic Value of Software Remarketing

In times of great economic upheaval, the challenges for those responsible for companies are particularly significant: high cost pressures, ongoing digitalisation, climate-neutral transformation, and geopolitical dependencies.

However, despite many risks, immense opportunities also present themselves. Flexibility is therefore certainly one of the most important factors for success. For IT managers and Software Asset Managers, it is essential not only to know their current licence inventory precisely but also to structure it as efficiently as possible and adapt it to changing internal circumstances and external conditions as needed. It is therefore little surprise that most companies favour hybrid IT architectures, allowing them to flexibly decide which workloads they run in the cloud and which they do not. Consequently, on-premises operation still holds a firm place in most IT departments. In addition to the advantages in terms of flexibility and independence, there are also tangible financial reasons. One frequently underestimated reason is the remarketing of used software licences, which repeatedly unlocks surprising potential.

In this blog post, we have compiled five important reasons that show why companies or public administrations should sell no-longer-needed software licences on the used software market, and why the current market conditions offer particularly good opportunities for a profitable licence sale.

Five Compelling Reasons Why Software Remarketing Pays Off

In our experience, a lack of licence transparency is often the reason why unwanted used on-premises licences are lying idle. Those responsible frequently underestimate this latent asset, since, unlike most physical goods, software does not wear out. Even larger medium-sized enterprises can quickly generate five- to six-figure proceeds through a sale. Furthermore, there are additional arguments in favour of targeted software remarketing:

1. Monetisation of Unutilised Resources

No-longer-needed software licences are a latent asset for many companies. Selling them allows this idle capital to be monetised and subsequently used for other IT projects or investments. This is a valuable lever for fund optimisation, especially in times of tight budgets.

2. Legal Security for Resale within the EU

Since the landmark rulings by the European Court of Justice (ECJ) and the German Federal Court of Justice (BGH) in 2012/2013, the purchase or sale of used software licences within the EU has been fully legalised. However, various requirements must be met for legally and audit-compliant trading. As one of the pioneers in the used software trade, PREO specialises in European licensing law. Their licence experts are happy to guide your company through the entire sales process.

3. An Important Contribution to Sustainability in IT

The resale of software is a direct contribution to an active circular economy in the EU. Companies that remarket their licences are acting in an environmentally responsible way by efficiently utilising existing resources and thereby reducing the need for new production. Furthermore, you can document and disclose this sustainability contribution as part of the existing ESG reporting requirements.

4. Optimisation of Licence Management

The targeted sale of no-longer-needed licences helps to cleanse the licence portfolio and minimise potential compliance risks. Concurrently, this gives IT departments a better overview of their actual licence requirements.

5. Strengthening Economic Flexibility

Resale not only offers short-term liquidity but also creates long-term strategic scope. Companies can react faster to technological developments or changing requirements if they are no longer tied to unused software.

Software Remarketing – Why the Market Conditions Are Particularly Favourable Right Now

Although the used software market continues to see increasing demand, the supply is declining in certain areas. This offers companies an attractive market environment to sell used licences profitably. In our view, there are several reasons for this currently favourable development:

1. The Hybrid Approach: Many companies are now pursuing a hybrid approach: while new applications are deployed in the cloud, established systems such as ERP or accounting software remain on-prem. As a result, existing licences stay in active use longer and are therefore not available to the market.

2. Skepticism Towards US Cloud Providers: Scepticism towards large US cloud providers has grown rapidly since the beginning of the second Trump administration. Data protection concerns, restrictive contract conditions, and dependence on providers such as Microsoft, Amazon, or Google are leading more and more European companies to re-evaluate their strategies. Instead of migrating entirely to the cloud, they are deliberately retaining their on-premises software, at least in part.

3. Data Sovereignty Concerns: In this context, concerns about data sovereignty are also increasing. Control over sensitive company data remains a central issue, particularly in areas of critical infrastructure, state institutions, or sectors close to defence. On-premises operation in one’s own data centre continues to be considered a secure solution and often offers better opportunities for meeting existing compliance requirements. This also ensures that existing licences are more likely to be retained rather than sold on.

4. End-of-Support Decisions: With the upcoming end of support for Windows 10 and Office 2019, many companies face important decisions regarding the future direction of their IT landscape. Given rising costs and uncertainty about the long-term price development of cloud subscriptions, many companies are keeping their software for longer than planned in order to stretch investments.

Are you looking for a reputable and experienced B2B partner for the purchase of used software licences from your current inventory? The PREO licence experts would be happy to advise you personally and provide you with a non-binding purchase offer upon request.

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Software Remarketing – Extensive Licensing Project Generates Millions in Proceeds

Following the merger of Fiducia and GAD to form Atruvia AG, a total of over 150,000 unused perpetual licences were identified and sold to PREO after the transition to Microsoft 365. This extensive project, which involved licence identification, the research of all usage histories, and remarketing, secured Atruvia proceeds in the single-digit millions. The Atruvia project demonstrates the enormous potential offered by the secondary software market when licences suddenly become available for which there is no further use, for example, after a cloud migration, a corporate merger, or a reorganisation.

Atruvia is the IT service provider for the Cooperative Financial Group and, among other things, manages the IT for nearly 900 Volksbanken and Raiffeisenbanken (Cooperative Banks). They chose PREO AG due to their transparent processes, their strong commitment to establishing licence histories, the 100% auditability of all licences, their extensive expertise, and their proprietary Safe3 system. The complete client case study can be found here.

With PREO, you are trusting an established and experienced B2B provider

As one of the leading B2B dealers of used software in Europe, PREO offers companies, organisations, and public administrations an extensive range of legally secure used licences from Microsoft, Adobe, VMware, Foxit, or ZWSoft. As a result, more than 1,000 clients have already benefited from:

• Significant savings on running licence costs, up to 70 per cent compared to the corresponding new version.
     
  
• 100 per cent legally and audit-compliant licence acquisition with maximum transparency throughout all transaction steps, including complete documentation in the PREO licence portal, “Easy Compliance”.
  
  
• Personalised advice on all issues concerning licence transactions or the integration of used software licences into classic network structures or hybrid cloud models.
  
  
• Greater sustainability in IT by promoting an active circular economy and reducing the corporate carbon footprint. Speaking of sustainability: PREO is the only used software dealer listed with a current scorecard on EcoVadis, the world's largest provider of sustainability ratings.
  
  
• Expertise drawn from numerous reference projects, which PREO has successfully executed for renowned companies across various industries and sectors.

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