Updated: July 12, 2020 (December 5, 2005)

  Analyst Report

Pre-Owned Licenses for Sale

My Atlas / Analyst Reports

1,325 wordsTime to read: 7 min

A broker who resells pre-owned Microsoft software has highlighted the potential for cost savings or revenue generation for volume licensing customers. Microsoft volume licensing rules set some criteria for such transactions, but do not prohibit them. While the emergence of a brokerage offers customers the opportunity to save some money on licenses, it could also encourage copycat organizations that sell pirated software at below-retail prices, so customers should be careful when purchasing software through such channels. Furthermore, Microsoft may modify its licensing agreements to further limit such transfers.

First Broker in Britain

The first company to begin selling pre-owned software licenses in any volume is Disclic Limited, a Microsoft partner in Britain. Disclic says it obtains most of its licenses as a result of companies going out of business, and works with companies that specialize in bankruptcies and insolvencies to identify potential blocks of licenses for sale.

The company resells packages of software that have been previously licensed through Microsoft’s Open License program, a low-end volume program that provides discounts of about 20% on many products. Open License is Microsoft’s simplest volume licensing program—a customer needs to purchase a minimum of only five licenses. The customer receives an authorization number good for up to two years from the time the Open agreement starts, and any future purchases through that authorization receive the same discount. A company can have multiple authorization numbers at any time, but an initial purchase of five licenses is required for each new authorization.

Atlas Members have full access

Get access to this and thousands of other unbiased analyses, roadmaps, decision kits, infographics, reference guides, and more, all included with membership. Comprehensive access to the most in-depth and unbiased expertise for Microsoft enterprise decision-making is waiting.

Membership Options

Already have an account? Login Now