EVEN THOSE WHO TRADE
IN USED SOFTWARE
MUST BE UP-TO-DATE.
From 29th July, customers will have to dig deep into their pockets for a Windows 10 licence: for instance, 280 euros will then be due for Windows 10 Professional. Up to now, the newest Windows version has been available for free. However, the operating system that is clearly dominating, as before, remains Windows 7. Its market share has even increased in 2016 – from 48.6 percent to 49.1 percent. Obviously the free update doesn’t seem to have caught on as much as the manufacturer had imagined: As Microsoft is piling on the pressure.
To the end of July, Microsoft apparently wants to ‘sway’ as many Windows users as possible towards migration to Windows 10. As a result, the company had even linked the notice for a free upgrade to Windows 10 to an automatic upgrade in the last few weeks. As soon as Windows 7 or Windows 8.1 users closed the now dialogue used by Microsoft via the close button, the upgrade is done automatically. In the meantime, the business decided on a new line of communication: The newest highlight is a warning blue screen – a notice for the upgrade that fills the screen – which suggests shutting down the current operating system. “It goes sorry for the interruption, but this is important”. Users could now either do the free upgrade or hide the notice, which is not supposed to appear again. Pressure that got quite a few users riled up.
Many businesses are holding on to their ‘old’ On Premise software, because they don’t want to go down the inevitable path to rental – at least for the time being. They are rejecting the new Microsoft operating system due to a lack of compatibility, because of security concerns or personal preferences. As Windows 10 is a rental version with uncertain variables due to various chargeable services, which is hiding permanent high costs, safety risks and unforeseeable dependencies on the manufacturer. And what’s more: From experience, the newest release isn’t always the best.
Save securely with PREO
Whoever wants to saddle up with Windows 7 or 8.1 to get hold of licences for instance, should actually seize their chance now. PREO usually delivers Windows 7 and 8.1 20 to 50 percent cheaper compared to the original price. At this time, you can get a Windows 7 Professional Upgrade for approx. 70 euros.
It’s also a good time for businesses that have opted for the new Windows operating system to check the licence situation in the company together with PREO. We turn your unused licences into cash – and give your 2016 IT budget a renewed boost.
More and more businesses are outsourcing their software and IT infrastructure. The main motives are that: ‘Software as a Service’ (Saas) and rental models such as Windows 10 are saving expensive acquisition costs. IT administration and updates are conveniently taken over by the IT service provider. However many SMEs are continuing to reject subscription models. The most important counter-arguments are: The security aspect, dependencies on the manufacturer and permanent high costs. Used software is a sensible alternative – even with regards to small IT budgets and sensitive customer and business data.
According to sector association Bitkom, more than half of all businesses are already making use of the benefits of external data storage. Valid arguments are easier teamwork due to mobile access options, simple computing capacity and disk space usage options, as well as decreasing expenditure for administration. However, Cloud doesn’t mean rent right off the bat. Many IT decision-makers in medium-sized enterprises are continuing to reject SaaS and subscription models. Software in particular is an uncertain variable in the rental version due to various chargeable services, which is hiding permanent high costs, safety risks and unforeseeable dependencies on the manufacturer.
Alongside compliance reasons such as information security and data protection, SMEs are having reservations about making themselves dependent on service providers or manufacturers. Ultimately, the newest release isn’t always the best. However, users of SaaS and rental models have less influence on updates and manufacturer migrations. You have to go along with it and accept all steps that for instance, Microsoft predetermines – even if this may cause considerable interface issues.
The time factor makes costs soar
In addition, a considerable expense is a commitment to continuous payments, which turn out to be permanently higher than when buying used software. Even if, at first glance, rental models protect the IT budget and promise cheaper infrastructure and operating prices, they don’t stand up to comparison with used software when looking at them more closely:
For used Office Professional Plus 2013 licences with a current value of approx. 185 euros, businesses make a one-off payment of 9,250 euros for 50 workstations.
With a 13 Euro base fee and 50 workstations, a comparable rental version costs 7,800 euros per year. Projected over 5 years (the average service life of a release), that’s 39,000 euros.
Therefore, the continuous costs of rented software have already exceeded the acquisition costs of used software many times over after a short time. The much-heralded supposed flexibility is already obsolete after a few months.
In control of licence management
An argument that is often used for SaaS models is to prevent under-licensing. However, using used software is also an effective tool to optimise licence management. PREO Software AG supports businesses to check their licence situation and to offset a possible data bottleneck in a cost-efficient manner. A positive side effect in this case is that: Used software dealers purchase unused software licences. Businesses are also releasing the pressure on their IT budget as well.
Count on security
The position of second-hand licences has changed in the last few years. With the ECJ ruling in July 2012 and the confirmation of this decision from the FSC, the legal basis for used software is clearly defined. However, an important premise for the used software trade is that buyers as well as software manufacturers can track where the respective licences come from. In order to prove a legally secure software transfer, PREO Software AG delivers a sophisticated security system.
By signing a volume licence contract, businesses are committed to proving their licence usage and stock in the correct manner, and on a daily basis. Despite this, quite a few heads of IT get anxious as soon as manufacturers such as Microsoft announce a plausibility check or an audit.
The reason for this is: Almost 25 percent of software in Germany is not sufficiently licensed. It’s more than 40 percent worldwide. According to Business Software Alliance, ‘damages’ of $63.5 billion arise as a result. You can believe these figures, but you don’t have to. One way or the other: The consequence of this – or reality – is that the large manufacturers are expediting the topic of auditing and licence plausibility checking. For instance, many plan to carry out an audit for the duration of each contract.
Here you will learn what principles businesses have to adhere to when using used software to get through the audit safely:
The legality of the acquisition and disclosure of the chain of rights are two of the most important principles for a legally secure purchase of used software.
However, not all used software dealers disclose the chain of rights. Data protection reasons are often used as a pretext to not have to divulge the origin of software licences. In the worst case scenario, the customer is on their own in the event of an audit. So that used software buyers are on the safe side in the event of a manufacturer inspection, they should already have had the legality of their software licences confirmed during the buying process.
You will find the most important points to bear in mind when buying used software, here:
As a result, second-hand licences are attractive to businesses that want to reduce their software costs. Ultimately, expenditures for licences and maintenance account for a major slice of the IT budget. In doing so, legal security plays a crucial role.
But there are still reservations as to how secure buying used software is. What risks you have to watch out for – and more importantly: How customers deal with them – is explained in a recent article from Computerwoche. The trade magazine has put together the most important facts for legally safe purchase of used software in an FAQ section: Here you will learn where the software comes from that is offered on the used market, what legal principles used software dealers have to adhere to, and how business can protect their IT budget:
The FSC’s rationale for its decision in the Usedsoft III case (11/12/2014) is now available. You have been able to view the base of the decision since 16/6/2015.
This is extremely interesting.
As for the first time in such a case, the FSC explained explicitly, that exhaustion of rights of distribution not only affects the initial purchaser’s copy, but also the rights of the copy that is created for a second purchaser. The FSC ruling has created a legal basis for trading with used software. Volume licences may be split and made available to third parties.
Specialist retailers will get relatively little of Microsoft’s new release in July. At least that’s what Tarox experts like Uwe Hüfner and Kristian Krause are estimating, in a conversation with CRN.
According to Uwe Hüfner, new opportunities and issues arise for specialist trade with the new Microsoft products that will appear on 29th July 2015. Improved security, as well as flawless transfer of productivity between different devices, was rated positively. Similar to adobe, Microsoft is switching to subscription models. This switch is a disadvantage for specialist trade with Office 365. According to Krause, the subscription model will continually supress the specialist trade channel from sales. Even customers may have difficulties with this, as giving their own data to clouds to US groups is still being met with rejection in this country.
Source: Quelle: www.crn.de
The legal dispute that has been going on for years between the US software group Oracle and a used software dealer met its end in a rather unspectacular fashion.
It wasn’t until the case was passed on to the ECJ from the FSC and back again, that the Munich Higher Regional Court was put in charge of it. It claimed that the used software dealer who filed for the revision would have to contend the following in particular: “That
The used software dealer now plans to avoid the inspection and withdraw the appeal.
Even these legalities have been met by PREO for years.