Is restrictive pricing of software limiting your business's growth?
A lasting effect of Covid-19 is that it accelerated the pace of digital transformation around the world. As businesses rush to capitalise on the growth opportunities and realise the cost efficiencies of the new norm, they face one challenge that has disappointedly remained unchanged by the pandemic - the cost of purchasing software.
Despite the digital revolution that has been going on around us, technology and software wastage is an issue that remains broadly ignored. According to IT experts, wastage results from either software simply not being used perhaps because of a company introducing a reduction in staff, initiating a merger, or making change in the IT or business operations. In addition, it is not uncommon for a business unit or individual to overstate their initial software requirements. In these instances, elements of the software just never get used.
Resale of used software
Over the past ten years as companies have grown, the reselling of used software has become increasingly commonplace, especially in Europe. It is based on the simple premise that if we are comfortable buying and selling second-hand laptops and PCs, why should we not do the same with the software that we use on these devices.
The resale market offers software that has been previously used or which remains unused having been installed but never actively deployed. In both the scenarios the usability of the software remains the same, and unlike hardware it has no depreciating value.
One company’s unused software frequently has value to another. According to a study from EHI Retail Institute, a German-based scientific institute, a significant number of companies would have a strong interest in the commerce of second-hand software in order to reduce costs. Second-hand software licences can be acquired at a discount when compared to price of new ones and, in addition, the resale of used licences can provide a capital gain on the IT department’s balance sheet. Other reasons that push companies to look at second-hand software include a need to ensure software stability and to reduce a costly dependency on continuous upgrades from software vendors.
Recent research carried out by 1E, a UK IT solutions company, estimated the value of unused software in the US to be worth $12 billion (Dh44 billion) and £1.7 billion (Dh8.68 billion) in the UK. 1E concluded that on average each year businesses install, but do not actually use, more than $100 worth of software on each PC. Taking into consideration the historical volume of unused software already installed on any business PC, the value of the used software increases to over $400 suggesting a total value of approaching almost $50 billion.
These figures support other research undertaken by Munich Strategy Group, a German-based consulting company, which estimated the value of unused software in Europe to be close to €10 billion (Dh44.4 billion), with Germany, Europe’s largest economy, the home to over €2 billion.
Now one of the world’s leading resellers of business software, Wiresoft is launching in the UAE and it is on a mission to offer genuine software to the region’s businesses at a fraction of the normal cost, realising its ambition of making original software more accessible to businesses looking to grow and thrive.
Originally launched in Germany in 2012, Wiresoft legally acquires original Used Software, including licences from reputable businesses. With more than 1 million satisfied clients, including many of the world’s largest and most successful brands, it has established itself as a trusted reseller of used original software.
For more information visit www.wiresoft.ae