19 Dec 2022



Used Software

Why used software should be part of the IT strategy not only in SMEs

Corona pandemic, energy crisis, inflation - the competitive pressure on companies has increased massively, especially due to the significantly more difficult economic conditions in the last 3 years. Costs are going through the roof, Companies and organisations are forced to take action. The search for and exploitation of efficiency potentials is at the top of the list. This is  because necessary expenditures and investments to secure business operations cannot be cut back or even cancelled. This is especially true for the areas of IT and digitalisation. In software asset management, there is often still considerable potential for savings without reducing the quality of the application, since software does not wear out even with long-term use.

In this blog article, you will learn why, in addition to many large companies or public administrations, more and more medium-sized companies are integrating second-hand software into their asset management and often realise savings in the six-figure range.

Used software for SMEs - these sectors benefit in particular

Times of economic crisis are challenging, people have become inventive and are finding different ways of doing business. Of course, not every company can withstand a crisis or even emerge stronger from it. However, small and medium-sized enterprises have proven to be particularly resilient in the past. Sectors that are already under high cost pressure, such as health care, utilities and waste management, mechanical engineering, tourism and services, are experienced in identifying economic opportunities and are prepared to go down different paths. This is especially true in areas that are characterised by great development dynamics and at the same time are elementary for a functioning daily business, above all IT and digitalisation.

Effective and efficient software asset management has become indispensable for medium-sized companies. For a complex IT  environment , the use of second-hand software is playing an increasingly important role. Second-hand software can be used flexibly and according to demand without any loss of quality, it  can be integrated into a hybrid software architecture without any problems and offers the possibility to significantly reduce existing licence costs or to monetise idle assets. The following industry examples illustrate this particularly well.

Buying used software - industry example hospitals and medical centres

The more than 47,000 employees of the Asklepios healthcare group care for and treat more than 2 million patients annually in its approximately 160 facilities. This makes the group one of the leading private operators of hospitals and healthcare facilities in Germany. Asklepios IT-Services succeeded in implementing a legally compliant and scalable IT solution with used software, which roughly halved the previous licence costs. Sounds almost too good to be true? Download our white paper today  and discover in detail how hospitals and clinical enterprises use the secondary market for software licences with PREO in such a way that they realise savings of up to 50 percent and more after only a short time.

Buying and selling used software - industry example supply and waste

Despite initial prejudices, PREO was able to convince the responsible persons at Nehlsen AG, one of the largest German service providers in the field of waste disposal, contracting and security for an intact environment, of the advantages of used software. The company, which is on a growth course, bought used Microsoft licences for Windows products, various applications, CALs and servers from PREO for the harmonisation and centralisation of the IT architecture for around 500 workstations. This made it possible to significantly reduce the running licence costs. In addition, licences that were no longer needed were sold, including parts of a Select contract as well as OPEN and OEM licences. In this customer case, you can read exactly how this worked, what total savings in the six-digit range could be realised and why those responsible want to continue to profit from trading in used software with PREO in the future.

Combining used software and cloud - mechanical engineering industry example

In addition to the financial savings potential, those responsible at the LMT group of companies, which is internationally active in the fields of special mechanical engineering and precision tools, were particularly convinced by the aspects of security and compliance, which are PREO's top priorities in the trade with used software. In this interview, IT Manager Tim Fäsecke explains why PREO's used software turned out to be the ideal interim solution on the way to a complete cloud architecture, which internal prejudices had to be overcome at the beginning and how a high six-figure sum was saved in the course of the project.

Used software - the advantages for medium-sized companies

Advantage 1 - Reduce costs

Especially with common operating systems or application software, such as the Microsoft products Windows or MS Office, savings of up to 70 percent can be achieved compared to the latest manufacturer version.

Advantage 2 - Increased efficiency

Digitalisation requires regular investments in the IT infrastructure of medium-sized companies. The need for investment usually grows with the size of the company, the number of locations and the degree of internationalisation. This makes it all the more important to regularly review the software equipment and to identify and consistently use potential savings or refinancing options.

Advantage 3 - Reduce surplus capacity 

Which software equipment is actually needed at which workplaces is one of the most important questions for SA managers in every company. The more dynamic the business development, the greater the challenges of efficient digital workplace equipment. This quickly leads to an oversizing of the software assets used, which tie up resources and budgets. The sale of existing but idle software licences provides additional income.

Advantage 4 - Less support and training effort  

As a rule, older software is much more mature. It has usually already been updated several times, runs more stable and the applications are better known, especially with standard programmes such as MS Office. This relieves IT managers of the burden of user support and reduces training costs.

PREO - Security in the trade with used software

PREO's used software licences are not only up to 70 percent cheaper than comparable new software, but also 100 percent audit-proof. Together with the legal department specialising in licensing law, PREO's licensing experts check all licences in advance of a purchase. This way, PREO customers receive detailed and complete proof of the rights chain without exception and can transparently track the following at any time

  • from which type of contract the software originates,

  • which contract numbers are assigned,

  • who the previous owners were and

  • whether they have properly uninstalled the software.

Additionally, you get all the details of the update history. If that is not enough security: Licence transfers are covered by PREO's comprehensive asset liability insurance up to an amount of 10 million euros!. At PREO, we call this security benefit the Safe3 system.

More and more medium-sized companies are becoming convinced of the combination of high savings and a secure transfer of rights and are taking new paths with used software from PREO in order to optimally manage their IT budgets and create new financial leeway.

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