Software licences for companies: order, compliance and cost

The one IT cost that grows on its own

A server is bought once and you can see it in the cabinet. Licences renew in the background, get added with every new person and almost never disappear when somebody leaves. After three years nobody in the company can answer two simple questions: what exactly are we paying for each month, and what would we produce if the maker asked for a list. This page is about getting both answers straight.

Cancellation window in the CSP model
7 days from purchase or renewal
Premium for monthly billing
about 20 per cent over the annual price
Subscription not renewed after 4 May 2026
keeps billing, with a 3 per cent uplift
Licence review before any offer
free, even without a contract

We keep this apart from neighbouring subjects so nothing has to be looked up twice. Licences that surface with virtualisation and server systems are covered on servers for companies, those that appear around databases and trade systems under deployments, and plan pricing on Microsoft 365. Here we deal with running the licences themselves: what is held, what the contracts say and whether it all adds up. The industry where this mess grows fastest is software companies, because every team there adds its own set of tools.

What companies pay for without knowing

Three things turn up in almost every first review. None of them is anybody being careless, only the result of nobody running the licences day to day.

  1. Accounts belonging to people who left

    An employee leaves, the account is disabled or perhaps not, and the licence still renews. In a company of forty that can be several entries, meaning a few thousand zloty a year for mailboxes nobody signs into.

  2. Two tools doing the same job

    Sales bought their own messenger, production its own cloud drive, and both are already inside the suite the company pays for anyway. Taken one at a time the invoices are small enough that nobody questions them.

  3. Subscriptions with no owner

    A tool bought on the managing directors card, or by somebody who changed roles long ago, renewing automatically to a private mailbox. When cancellation is attempted it turns out nobody has access to the billing panel.

We do not start by replacing tools but by taking stock. We set the invoices against the list of accounts, and only then does it become clear what duplicates the suite, what never gets signed into and what can be switched off without changing how anybody works. That stage usually pays for itself before anybody changes supplier. With Adobe licences this census pays off especially well, because seats are named and those left by people who have gone usually keep on billing.

Subscription rules nobody reads before signing

Microsoft now sells through the CSP model, and that model sets the rules in most companies. Three of them cause surprises again and again.

  1. Seven days and not a day more

    Seats can be reduced, or a subscription cancelled, only within seven days of purchase, renewal or adding licences. After that it is paid for to the end of the term, even where the mistake was one click too many.

  2. Downwards only at renewal

    Seats can be added at any time but not taken away. On an annual commitment, five people leaving in March does not lower the bill until the anniversary, so seat counts have to be planned around the minimum headcount rather than the target one.

  3. The free grace period is gone

    Since 4 May 2026 a subscription that reaches the end of its term without being explicitly cancelled does not quietly lapse. It moves to a paid extended term and keeps billing monthly with a three per cent uplift, or as much as twenty three for products with no monthly plan.

Hence our rule on billing terms: monthly costs around twenty per cent more than annual and only makes sense where headcount genuinely moves, for instance with seasonal work. We buy the permanent core on an annual term and the fluctuation monthly. Renewal dates are watched on our side, and we remind you before the window opens rather than after it shuts.

When the maker asks what you can produce

A licence audit is not a tax inspection and does not begin with a knock at the door. It begins with an ordinary letter asking for a list, which has to be answered.

  1. What they check

    Installed copies set against entitlements held, versions and editions, and for server software also the counting method, meaning cores, users and indirect access through another application. A discrepancy in any of these counts as a shortfall.

  2. How it ends

    Missing licences have to be bought, this time without a discount and usually at list price, and the maker may claim payment for the period of use. On top comes the time your people spend gathering documents, which nobody counts and which is often the larger cost.

  3. An invoice is not proof

    The commonest misunderstanding runs: we have the invoices, so we are clean. The proof is the licence document together with the terms on which it was granted, not the record of payment. With hardware sold with a system included it also matters whether the licence was tied to a motherboard that has since been replaced.

We do this in the opposite order from most firms: first establish the facts for your own purposes, calmly and with no outside deadline, then fill the gaps. When the letter arrives, the answer is ready. A wider review of the whole environment runs as an IT audit, with licences as one of its chapters.

Second hand licences are legal, but not all of them

This is a subject where money is easily saved and just as easily lost. Two judgments of the Court of Justice of the European Union settled it, and the limits are worth knowing.

  1. What the Court held

    In UsedSoft against Oracle in 2012 (C-128/11) it was held that the first sale of a perpetual licence exhausts the right to distribute that copy further, including where the program was downloaded from the internet. A clause in the licence forbidding resale does not change that.

  2. On what conditions

    The licence has to be perpetual and bought outright, and the seller is obliged to make their own copy unusable. A multi seat pack may not be split so that only some seats are resold, so an offer of twenty out of a pack of fifty is a warning sign.

  3. What it does not cover

    Subscriptions, because there is no sale of a perpetual copy to pass on, so second hand Microsoft 365 simply does not exist. The Ranks judgment of 2016 (C-166/15) also settled that where the original medium has been lost, the back-up copy may not be handed to a buyer without the makers consent.

To be clear: we do not trade in second hand licences and have no interest in them. We only say when they are worth considering and what to demand from a seller, meaning the original purchase documents, a statement that the copy was removed and confirmation that the pack was not split. If a seller cannot provide that, the price stops mattering, because in an audit it is you who answers for legality.

The licences we handle most often

We buy them for clients alongside the rest of the support and watch the dates, but each of these areas counts entitlements its own way.

Microsoft 365 and Windows

Business plans, licences assigned to people rather than machines, order in shared accounts, and making sure a new hire does not automatically mean the most expensive package.

Microsoft 365 for companies

Server systems

Windows Server and software counted by cores, where the cost is decided by the hardware underneath rather than by the number of people at desks.

Servers for companies

Databases and trade systems

The hardest group, because this is where indirect access appears: a user who has never seen the database and still needs a licence, because they reach it through another application.

System deployment

Security subscriptions

Protection for workstations and servers plus firewall services billed yearly. Here a gap in protection usually comes from a missed renewal rather than from the price.

Sophos

Team working tools

Request and documentation systems where the price jumps once a user threshold is crossed, so the tenth person can cost more than the nine before them.

Atlassian

Licences bought with hardware

A system supplied with a computer is cheaper but stays tied to that machine for good. It does not move to a replacement, which is worth knowing before the purchase rather than after.

IT hardware supply

What we do not do: we are not a law firm and do not issue legal opinions, and a dispute with a maker needs an intellectual property lawyer rather than an IT person. We answer for the facts, the documentation and for the numbers adding up. That is usually enough, because most licence trouble comes from disorder rather than from a dispute over interpretation.

How we put licences in order

Four steps, the first of them free and ending in a document that stays with you whatever happens next.

  1. Week 1, free

    Taking stock

    We collect invoices, billing panels and the list of accounts, then set them against what is actually installed and used. The result is a table showing how many licences you hold, how many you consume and where the two part company.

  2. Week 2

    The reckoning

    We split the discrepancies into two columns: overpayments to recover and shortfalls to close. Each entry carries an amount and the date of the next window for changes, because that decides whether a saving lands this month or in a year.

  3. Weeks 3-6

    Tidying up the buying

    We move licences under one company account, align the renewal dates and switch off whatever duplicates the suite. Surplus comes off at the first window available, while shortfalls are closed straight away rather than left as open risk.

  4. Onwards

    Running it from then on

    A new person gets a licence along with the account, a departing one loses it the same day, and before every renewal we check the state and ask whether anything has changed. Once a year we run a full review, because after twelve months something has always crept in.

Neighbouring subjects

The pages that come back when licences and software costs are discussed.

Questions about software licences

How much can be recovered by tidying licences up?

We will not quote a percentage, because it depends purely on how much disorder has built up rather than on the size of the company. We have seen environments run impeccably with nothing to cut, and others where a third of the seats had no user. That is why the first review is free and ends with a figure rather than a promise.

What the review involves

We have had a letter about a licence audit. What now?

Above all do not send data back straight away, because whatever you send once stays on the table. First we establish your own picture of the facts, check what you actually hold, and only then prepare the answer. Where there are shortfalls it is usually better to come forward with a proposal to close them than to wait for the other sides calculation.

What a maker audit involves

Can we buy cheaper licences second hand?

With perpetual licences yes, and it accords with EU law, provided the seller has stopped using them and the pack was not split. With subscriptions no, because there is nothing to resell. We do not trade in them ourselves, but we will check the paperwork behind an offer before you spend the money, because in an inspection the buyer carries the responsibility.

Conditions for resale

Why can we not reduce the licence count right away?

Because in the CSP model seats come down only within the seven day window after purchase or renewal, and outside it not until the next renewal. That is the makers rule rather than our margin, and it applies at every reseller alike. So with seasonal staffing we split the licences into a permanent core on an annual term and a variable part on monthly.

Subscription rules

Will the licence from a laptop move to a new computer?

A system bought together with a computer is tied to that particular machine and does not move to the next one when it is replaced. Licences bought separately, in the business edition, usually can be moved. The price difference at purchase is often small, and at the hardware refresh three years later it turns into real money.

Buying hardware and licences

We run old versions of programs. Do they have to be replaced?

As a matter of legality no, because a perpetual licence does not expire when support ends. The trouble is security, since a program without fixes sits in the environment as an open door, and compatibility with newer systems. We base the decision on whether the application touches the internet and personal data.

IT security

Do we have to buy licences through you?

No, and we do not make it a condition of working together. Some clients buy directly from the maker or already have a supplier, and we simply keep the register and watch the dates. If you do buy through us, you see the purchase price and our margin separately, because with licences a hidden commission is the quickest way to lose trust.

What IT support covers

Tell us about your infrastructure

The first meeting takes 30 minutes and commits you to nothing. We will tell you straight whether we can help and what we would propose.

Wielkopolska · Poznań · Kalisz · Konin · all of Poland