Update on Buying and Selling “Used” Software

By Chris Hughes

This recent blog post gave an insight into the potential for organizations to purchase or sell used software, including a landmark ruling in the European Court of Justice against Oracle in 2012 which declared the sale of used software to be legitimate, including cases where the software is obtained via digital downloads and for which there is no physical media.

A new ruling against SAP has added more weight to this topic. Despite SAP’s terms and conditions not permitting the resale of perpetual licenses, those terms and conditions were ruled to be not legally binding, which upholds the right of organizations in the European Union (EU) to sell their unused licenses.

These developments remain limited to the EU, and many organizations won’t risk compromising their strategic vendor relationships or the possibility of being unable to secure ongoing maintenance for their second hand purchases. However, this ruling will provide reassurance to a growing secondary software market which also includes Microsoft software. While there are risks, there is a compelling financial upside for those that choose to make the leap to buying and selling used software licenses.

I wrote a blog post on SAP’s recent licensing policy changes which provide additional scenarios for leveraging unused software assets to deliver real financial returns. Cost saving opportunities such as these are available for organizations that look for them, but they require organizations to take proactive steps to better manage and optimize their software assets.

To learn more about SAP license management, please view our on-demand webinar: SAP License Management Challenges and Opportunities

 

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