#AUTODESK AUTOCAD SUBSCRIPTION SOFTWARE#
How critical the software is to business operations Hence stable, consumer-orientated software is likely to achieve a price closer to the original cost of acquisition than a complex business application for these reasons. If all that the employees in that company use is some basic word processing and spread sheet functionality, then their needs would be met with such a solution. For example, a small company with a limited IT budget may be perfectly happy to purchase some second-hand licences for Microsoft Office 2016, and continue to use the software for five years or more without upgrading the software. Stable software product which is relatively independent of the underlying operating system may not need regular updates. The stability of the software and the need for updates ProCADIS can advise you on this and propose solutions via our partner network. As a seller, being able to offer the buyer the possibility to purchase third party support will greatly increase the price a second-hand licence will achieve. Rimini Street, Spinnaker Support, Alui, Support Revolution and CedarCrestone offer support on many software products from top vendors, often with better SLAs than what the software publisher will offer. The market for third-party support on software is growing rapidly. The value of the second-hand licence will be greatly enhanced by the presence of a third-party support provider. By cooperating with software publishers, ProCADIS adds to the value to software licences by giving the buyers of that software confidence in acquiring licences with the approval of the software publisher.įore more information, please look at the section dedicated to partners on our website or contact us directly. Software licences that are no longer used provide no income for a software publisher, whereas a second-hand sale can give that licence a new lease of life, and gives the software publisher a new source of revenue from maintenance and support payments. Our intention is to encourage software publishers to see second-hand software sales as an opportunity to expand their client base. ProCADIS strives to reach agreements with software publishers. ProCADIS's partnership agreements with software vendors Compared to requiring a maintenance contract immediately, this is a huge advantage to the buyer. Secondly, because the buyer (or ProCADIS on the buyer's behalf) has time to negotiate with the software publisher in order to agree a reasonable price for a future maintenance term. Firstly, because during the maintenance period the buyer need not purchase maintenance. If the licence is being sold with a period of maintenance and support still to run, then this will obviously increase its value. In the case of a software publisher that typically discounts by between 10% and 20%, this is not as much of a disincentive as in the case of a software vendor who typically discounts by 80% and 90%.
The software publisher can attempt to discourage second-hand sales of their software licences by insisting on charging list price for maintenance and support. Why does this matter for second-hand software sales? The most obvious difficulty for a buyer of second-hand software is to purchase maintenance at affordable rates.
Some software publishers have very high list pricing and then offer discounts between 80% - 90% more or less as standard others only offer 10 or 20%. In order for a seller to recover as much as possible of the original cost of acquisition of the licence, the following influencing factors should be considered in order of relative importance: 1. There are a multitude of factors which will influence the attractiveness of a software licence on the market. ProCADIS experts are available to provide guidance in this. However, given that the market for second-hand software is very much in its infancy, it can be difficult to estimate how much a perpetual software licence will sell for.
Similar to the popular internet platform eBay, ProCADIS's Digital Exchange exists to bring buyers and sellers together in a virtual marketplace. It is the commercial philosophy of ProCADIS to put pricing decisions in the hands of sellers.
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