Microsoft licensing prices tipped to fall

by admin November 14, 2005 at 1:35 pm

The discovery that the sale of second-hand Microsoft user licences is legal could mean big savings for companies

Licensing prices for Microsoft software are set to plunge because of a second-hand market which has sprung up, thanks to a loophole in its terms and conditions.

As reported last week, a UK firm called Discount Licensing is buying software licences from companies that have gone into liquidation or have lost staff and reselling them to other companies.

Discount Licensing is taking advantage of British insolvency laws and a clause within many Microsoft licences that permits disused or unwanted volume licences. The company claims be selling its licences at a discount of around 20 to 50 percent below prices of any other authorised Microsoft reseller.

David Roberts, chief executive of the Corporate IT Forum, which represents IT directors from Britain’s largest companies, believes pressure from Discount Licensing could force traditional resellers to become more competitive.

Full article: ZDNet UK