Businesses are increasingly looking to secondary software licences as a way of controlling IT costs, as subscription-based models put pressure on budgets, according to an analysis by software broker Forscope.

The company said the secondary software market was becoming a strategic alternative for organisations seeking to reduce their technology spending while maintaining access to fully functional software.

The market centres on perpetual software licences that are no longer required by their original owners but can be transferred to other businesses under certain legal conditions.

According to Forscope, such licences can typically cost 60 to 70 per cent less than new software, while providing the same core functionality.

The shift is taking place as businesses reassess their technology spending and the longer-term cost of subscription-based software, the company said.

Forscope argued that fixed subscription costs could absorb funds that businesses might otherwise direct towards digital transformation and artificial intelligence projects.

The analysis linked the growing interest in secondary licences to changing priorities among chief financial officers, who are increasingly focused on reducing total cost of ownership and operating expenses.

Rather than automatically opting for the latest software version or the most expensive cloud subscription, businesses are increasingly assessing what software they actually need and how it is used, according to Forscope.

“The milestone of half a million licences is proof that businesses are beginning to treat software as rationally as their other assets, examining its actual use, its long-term cost and the possibility of resale,” Forscope chief executive Jakub Sulak said.

“Not all users need the most expensive cloud subscription or the latest version. The goal is to find the solution that meets the company’s actual needs, while drastically reducing costs,” he said.

The company said the approach effectively treats software as a long-term business asset, rather than an expense that must continually be renewed through subscriptions.

Forscope also highlighted the legal framework underpinning the European secondary software market.

The resale of software licences is supported by established decisions of the Court of Justice of the European Union, provided specific conditions are met.

These include the licence having been legally acquired originally within the EU or European Economic Area, being perpetual rather than time-limited, and having been permanently uninstalled by the previous owner.

Forscope said reputable providers should also be able to supply businesses with full documentation and traceability for transferred licences.

This documentation can help companies demonstrate compliance if their software use is subsequently subject to an audit.

The company said the model also had implications for the circular economy, as existing software licences could continue to be used rather than being tied permanently to their original purchasers.

The analysis comes as businesses face a broader debate over the economics of software subscriptions, particularly where organisations have accumulated recurring costs across multiple applications and services.

Forscope said its experience in the market showed that businesses could redirect money saved on software towards other areas of growth.

“Compared with buying new licences, we have helped our customers save more than €41 million, funds that they can channel into their further growth,” Sulak said.