**Businesses Turn to Secondary Software Licences to Cut IT Costs**
In an effort to manage rising IT expenses, businesses are increasingly exploring secondary software licences as a cost-effective alternative to traditional subscription models. This trend has been highlighted in a recent analysis by Forscope, a software broker that specializes in the secondary software market.
As subscription-based software models continue to exert financial pressure on corporate budgets, many organisations are reassessing their technology expenditures. Forscope's analysis indicates that the secondary software market is emerging as a strategic option for companies aiming to reduce their technology spending while still accessing fully functional software solutions.
The secondary software market primarily revolves around perpetual software licences that are no longer needed by their original owners. These licences can be legally transferred to other businesses under specific conditions. Forscope reports that such secondary licences can cost between 60 to 70 percent less than purchasing new software, while still providing the same core functionalities that businesses require.
This shift in purchasing behaviour is largely driven by changing priorities among chief financial officers (CFOs), who are increasingly focused on minimizing total cost of ownership and operating expenses. Forscope suggests that rather than automatically opting for the latest software versions or the most expensive cloud subscriptions, businesses are now taking a more analytical approach. They are evaluating their actual software needs and usage patterns, which allows them to make more informed decisions about their technology investments.
Jakub Sulak, CEO of Forscope, remarked on this trend, stating, “The milestone of half a million licences is proof that businesses are beginning to treat software as rationally as their other assets, examining its actual use, its long-term cost and the possibility of resale.” He emphasized that not all users require the most expensive cloud subscription or the latest version of software, and the goal should be to find solutions that align with the company's actual needs while significantly reducing costs.
Forscope's analysis also sheds light on the legal framework supporting the European secondary software market. The resale of software licences is backed by established rulings from the Court of Justice of the European Union, provided certain criteria are met. These criteria include the original acquisition of the licence being legal within the EU or European Economic Area, the licence being perpetual rather than time-limited, and the previous owner having permanently uninstalled the software.
Moreover, Forscope highlights the importance of reputable providers being able to supply full documentation and traceability for transferred licences. This documentation is crucial for businesses, as it can help demonstrate compliance during software audits.
The move towards secondary licences also aligns with broader discussions regarding the economics of software subscriptions. Many organisations have found themselves burdened by recurring costs associated with multiple applications and services. Forscope’s experience in the market suggests that businesses can redirect the funds saved from opting for secondary licences towards other growth initiatives. Sulak noted that, “Compared with buying new licences, we have helped our customers save more than €41 million, funds that they can channel into their further growth.”
The implications of this trend extend beyond immediate cost savings. By treating software as a long-term business asset rather than a recurring expense, companies can foster a more sustainable approach to technology investment. This shift not only aids in financial management but also contributes to the circular economy, as existing software licences can continue to be utilized rather than being permanently tied to their original purchasers.
As businesses navigate the complexities of modern software needs and budgets, the growing interest in secondary software licences presents a viable solution for controlling IT costs. This approach allows organisations to maintain access to essential software while optimizing their technology spending in an increasingly competitive landscape.