In the interview with Ronny Schausten, Managing Director of S2 Software GmbH & Co. KG

Digital transformation is a top priority for companies and currently one of the most important topics on CEOs' agendas. Costs are generally not scrutinized in detail—it’s all about smooth IT operations and pursuing long-term goals. However, the 2020 State of Tech Spend Report shows that, on average, around 8.2% of business revenue is spent on IT. According to many top decision-makers, as much as 12% of IT spending is unnecessary or avoidable. For DIGITAL FUTUREmag, this is reason enough to investigate the matter and take a closer look at cost-saving potential with a true IT cost-cutter. We speak with Ronny Schausten, Managing Director of S2 Software GmbH & Co. KG, about how even used software can significantly reduce costs, particularly for Germany’s SMEs. Since 2016, Schausten has specialized in the buying and selling of used software and has since established his business idea as a well-regarded model.

DIGITAL FUTUREmag: Mr. Schausten, when it comes to cutting costs, managing directors and buyers are always eager to squeeze out every last cent. Why is software different? Does image play a role here?

Ronny Schausten: Ever since trade began, people have strived to achieve the highest price for their products while paying the lowest price for goods they purchase. This same principle has applied to nearly all intangible goods—including software—since digital transparency became a reality. If we search the internet for the term “used software,” we get 36 million results. For “new software,” there are 305 million. Another example: “new cars” yields nearly 23 million hits, while “used cars” returns over 43 million. Why do I use this comparison to answer your question? Well, while the automotive industry’s image has suffered in recent years due to software-related emissions scandals, demand for used cars has grown. We’re seeing this same trend in the software market. Used software is becoming increasingly popular, with growing demand. It’s freely marketable. Those who purchase used software licenses are entitled to all associated service benefits, meaning there are no disadvantages compared to buying new. It’s a slow but steady increase—and one that has become even more noticeable due to the COVID-19 crisis—as more companies focus on cost savings without risking their image. We’re seeing more and more larger companies considering used software and submitting inquiries.

DIGITAL FUTUREmag: When does it actually make sense to focus on used software licenses? Who benefits most from used software?

Ronny Schausten: The answer is very simple: Every company that maintains an IT infrastructure should ask itself where there are dealers that can reliably guarantee savings potential in the area of software licenses and where the reliable partners are that provide all the necessary documents so that under- or over-licensing can be avoided in the event of an audit. And if possible, without charging audit costs for the licenses acquired from this company.

DIGITAL FUTUREmag: Where does the used software come from and why is it widely distributed?

Ronny Schausten: We are in contact with many medium-sized and large companies that use the corresponding software as first-time users. When switching to a different version is planned or licenses are no longer needed for other reasons (e.g. in cases of insolvency, mergers, major staff reductions, internal restructuring, etc.), this presents an opportunity to sell them. This allows companies to recover part of their original investment and therefore have a strong interest in driving this process forward. Software does not wear out. In our view, it would be wasteful and also unsustainable not to continue using it.

DIGITAL FUTUREmag: It is often reported that a lot of shady deals are done with used software. For example, Windows keys are offered for less than 10 euros. Microsoft itself officially sells the supposedly same Windows 10 Pro version for 259 euros. How can users keep track of this?

Ronny Schausten: The provider pcfritz.de was a well-known pioneer. A platform that traded in software and hardware. Insiders are well aware of the issue. And yes, a more than valid and frequently asked question: How can users keep track when there are potentially countless dubious Windows 10 Pro offers?

Perhaps the approach of only buying from dealers who, in addition to the invoice and delivery note, provide the license transfer documents and can advise customers on correct licensing is helpful. And if these sellers also handle all correspondence in the event of an audit by Microsoft or service providers commissioned by Microsoft for the licenses purchased from them: it doesn’t get much better than that. And yes, at S2-Software, customers receive all of this.

DIGITAL FUTUREmag: OK – that sounds absolutely customer-friendly. What are the clear benefits of used software and what is the difference between on-premise solutions and cloud subscriptions?

Ronny Schausten: The main advantage, as with all used goods, lies in the price. When companies that have purchased, for example, 500 units of Microsoft Office 2019 Professional Plus find that they only need 400, they are grateful when there are dealers like us to whom they can sell the excess. Since software does not wear out like a car, we talk about used software, but in reality, it is software from remarketing. Over the past few years, I have repeatedly discussed the topic of on-premise or cloud with customers. There are completely different opinions here. Some are true advocates of the cloud, others are absolute opponents. Both have advantages and disadvantages that each person defines for themselves.

DIGITAL FUTUREmag: Which types of software are particularly attractive for companies interested in used software, and where are the limits?

Ronny Schausten: The only limit is the word new. New in the sense that this item from, for example, Microsoft is not yet available as used software on the market. Apart from that, the price difference between these two, let's call them product groups, is considerable and will have a significant impact on the IT budget. Customers receive the performance of the original programs at significantly lower prices.

DIGITAL FUTUREmag: If companies now want to purchase used software, what are the individual steps up to the purchase? Can interested parties also receive advice?

Ronny Schausten: The challenge for companies is not to buy used software, but to find the right partner for a trustworthy and long-term business relationship. Partners who can guarantee long-term price stability, so that you gain planning security for the IT budget and thus sustainable cost control. The rest is simple: request licenses, delivery via invoice, download software, install and activate the license. Here, we not only offer needs-based solutions as support, but also individual advice. Because every company is different.

DIGITAL FUTUREmag: When is it worthwhile for companies to dispose of software they no longer need? How does the sales process for software work?

Ronny Schausten: There are various situations in which companies decide to dispose of software. Whether through mergers with other companies, insolvencies, decisions by management to skip a year or simply through the acquisition of too many licenses. In all these cases, it is easy for corporate customers to sell the surplus. They contact us and we support them in selling these licenses fairly and in compliance with the law.

DIGITAL FUTUREmag: Mr. Schausten, this was a truly inspiring interview with many sustainable aspects that our readers will certainly find worth considering. Thank you very much for your time.

Ronny Schausten: Thank you very much to you as well, and stay healthy!