Secondhand Microsoft software goes on sale

Microsoft has stunned some in the British reseller community by allowing a discount dealer to sell secondhand volume licenses, opening the floodgates for a used-software market in the U.K.

Disclic this week began offering secondhand software licenses from insolvent or downsizing companies to other businesses with Microsoft's blessing.

"Yes, we are doing that," said Jonathan Horley, a director at Disclic. "It's been in planning for a year and a half. Previously, a lot of companies didn't see software licenses as an asset, but this helps them see that."

A loophole in British insolvency laws and a clause within many Microsoft licenses that permits disused or unwanted volume licenses to be transferred enables Disclic to sell the licenses legally. The licenses are offered at a discount of around 20 to 50 percent below prices of any other authorized Microsoft reseller.

A Microsoft representative confirmed on Thursday that Disclic's resale of licenses "does meet Microsoft's terms and conditions."

Chris Lamb, the software licensing manager at Basilica, which sells products to large enterprises, said he was shocked to hear the software giant would allow the practice.

"This is certainly going to be a concern to us, as we focus on giving our customers a complete value-add service. I don't know what kind of prices these guys are offering, but if you can buy exactly the same licenses at a third of the price that could be very damaging," Lamb said.

Other resellers were also surprised that Microsoft would allow something so potentially damaging to partners and to its own licensing revenue.

"I've never heard the like, and I am stunned," said Gordon Davies, the commercial director of Microsoft reseller Compusys. "This is clearly going to take away revenue from the channel and from Microsoft," he said.

Davies is also considering whether Compusys may be able to turn the situation to its advantage.

"I'm split two ways about this because it could be the start of a whole new business proposal," Davies said. "Perhaps if there was an online portal, where you could bid for the licenses of insolvent businesses, it could create a new channel."

Zak Virdi, the software services director at Bytes, which aims its products at large companies, said Microsoft should monitor the activity of discount dealers closely. "This has got to be very carefully looked at," he said.

The new business approach of selling off volume software licenses could take time to sink in, Disclic's Horley said. "It's such a new concept to the way people bought licenses before. How people react in terms of the resellers and the users remains to be seen," he said.

Karen Gomm of ZDNet UK reported from London.

[aabcdefghij987654321]

you can bet...

...that an army of Microsoft lawyers is reviewing and rewriting their license agreements as we speak!

[Dachi]

About time!

MS has said in the past that it would like to make its licensing scheme more flexible. It would be a shame if they find a way to prevent this.

If I get a new PC, I have to get a new license for XP for it. It is a sham I can't "unregister" the previous machine so that I can install XP on the new one.

You could almost argue that is somehow logical till you also realize: When you sell that old PC to someone, MS wants you to _remove_ the OS from it, leaving them with the responsibility of buying their own (read: yet another) license.

So in the above scenario, if the 2 PC's shipped with crapafied OEM versions of XP home, and you stuck your own version of XP pro on them, MS has now sold 5 copies of XP for 2 PC's.

It is not fair to have it both ways. If you are going to tie the license to the user, let them transfer it. If you are going to tie it to the PC, then let it stay with the PC.

I am not sure if this is already the case or not, but you should also be able to use a license for XP (original) with XP SP2. This way, if you reinstall, you can just install XP SP2 rather than have to upgrade to it.

Also, the same goes for the license OEM's give you with a new PC (and quick restore CD).

I should be able to take my Dell XP home key and use it with a Microsoft XP SP2 OEM CD.

[Gayle Edwards]

It gets WORSE...

Microsoft has now actually begun a new program creating a "Microsoft Certification" (which must be frequently renewed) merely to demonstrate that an "IT Professional" is "Industry Certified" (by Microsoft) in understanding the continually-changing, ridiculously-complex (and, in opinion of many, clearly Anti-Consumer), nature of "Microsofts Licensing Agreements".

Now, if THAT doesnt say something very fundamental about Microsofts ideas on the future of "software licensing"...

smells fishy! y y y yy y y!!!

what a crime...

[npxzbebq]

It can be good for software sales

If the value of software can be recovered/salvaged in future re-sale, it may be easier for a company to purchase licenses that hold (some) future value, rather than have the license value just evaporate into... well... vaporware... The industry just has to come to terms with this paradigm.

[clan010]

The Windows "subscription"

Because Windows XP has been out for four and half years, a lot of people have already bought a new computer to replace their old one which ALSO had Windows XP on it. In this case, you're paying twice for the same software. And if you're a college student in a college that has a Campus Agreement, you're paying for it yet a third time. The college supposedly is paying for Windows XP upgrade licenses, but after 4 and a half years, nobody needs an XP upgrade... all computers already have XP on them. What a rip off... no wonder people are pirating Windows, and I can't blame them.

[208774626618253979477959487856]

Hey Billy!

Poor Bill - bleeding money on used software market bu hu
http://www.analogstereo.com/cassette_deck_nakamichi.htm

[Quickshiper]

80% SOFTWARE NOT USED

80% OF SOFTWARE PEOPLE BUY IS NOT CURRENTLY BEING USED. WE RECYCLE TIN CANS WORTH 2 CENTS, WHY NOT RECYCLE SOFTWARE? OH WAIT...BECAUSE OUR GOVERNMENT IS CONTROLED BY ILLEGAL MONOPOLIES.... LIKE OPEC ETC.

[sfraider24]

US Reseller Does The Same

There is a reseller that offers the same service to US based Microsoft Open License customers:

www.microsoftsale.com

The site is operated by a reseller by the name of Wasatch Software: www.wasatchsoftware.com .