The Trusted Third Party, Guarantor of Software Compliance

Between 49% and 80% of the initial purchase cost of the software inventory. This is the estimated total cost of non-compliance [1]. A risk faced by 75% of companies! Hence the importance of acquiring second-hand licenses from a trusted third party. Objective: ensure the proper compliance of licenses through thorough verification.

The current economic context is pushing companies to reduce their IT budgets and make savings, including on their licenses. The SI-LogisM group estimates the piracy rate in France to be 37%. As a result, the software market is under pressure and publishers are on the lookout, multiplying audits.

Besides the financial penalty in case of non-compliance, the cost related to mobilizing internal staff can also quickly increase. On average, an audit conducted by a major publisher (Microsoft, Oracle, IBM, VMware, SAP…) can involve about ten employees for 15 to 30 days.

From Trust to Compliance

The compliance of software licenses is synonymous with security for the company… without neglecting quality. That’s why, when a company opts to purchase second-hand licenses, it must be assured of having the right usage rights. Therefore, as a true trusted third party, the platform must have conducted the necessary verifications before the transaction and require the seller to provide the original documentation with the product.

Among the guarantees to be provided to the buyer:

• The legitimacy and legality of the initial acquisition of the licenses.
• The completeness and accuracy of the documents characterizing the license.
• The compliance of the transferred licenses with the communicated documents, especially concerning the scope and terms of the software usage rights.
• The original conservation of the documents characterizing the license.

The list is not exhaustive, but the role of the trusted third party is to ensure compliance with this procedure before proceeding with the transaction. For the company, it is a guarantee of purchasing licenses in full compliance and legitimacy.

[1] According to a study by the SI-LogisM Group, January 2018 – https://www.groupesilogism.fr/2018/01/09/conformite-logicielle-leviers-maitriser-risques/