Microsoft’s Open License Program, or OLP, officially ended on 1 January 2022. For more than twenty years, Open License was the standard channel for small and medium sized organisations to buy perpetual Microsoft software licences with volume discounts. Its successor is the Cloud Solution Provider, or CSP, programme, a model that works through Microsoft partners and is primarily aimed at cloud subscriptions. But there is a third option that is often overlooked: pre-owned volume licences. In this article, we compare all three models and show when each option is the smartest choice.
What changed after January 2022?
Until 31 December 2021, organisations could buy perpetual Microsoft licences through the Open License Program from a Microsoft partner. The licences were registered in the Volume Licensing Service Center, or VLSC, and were owned directly by the buyer. The minimum purchase was five licences, there was no subscription, and there was no end date.
Since 1 January 2022, this channel has been closed. Microsoft moved the purchase of perpetual licences for small and medium sized businesses to the CSP programme. Existing Open License licences remain valid. You do not lose any rights to licences that you bought before 2022. However, new purchases through Open License are no longer possible.
The result is that organisations that still want to buy perpetual Microsoft software now have two options: perpetual licences through the CSP programme, via a Microsoft CSP partner, or pre-owned volume licences, via a specialised supplier such as Softtrader. Both provide the same software, but the model differs fundamentally.
What is the CSP programme?
The Cloud Solution Provider, or CSP, programme is Microsoft’s current sales channel for partners. Through CSP, Microsoft partners can sell cloud subscriptions such as Microsoft 365, Azure, and Dynamics 365, software subscriptions such as Windows Server and SQL Server as a subscription, and perpetual licences to their customers. More than 90,000 partners worldwide participate in the CSP programme.
The key difference compared with Open License is that perpetual licences in CSP are no longer registered in VLSC, but appear in the customer’s Microsoft 365 Admin Center. The licence itself is technically identical to an Open License licence, with the same software and the same activation, but the management model is different. In addition, CSP does not offer Software Assurance for perpetual licences, which means you do not get automatic upgrade rights to newer versions.
What are pre owned volume licences?
Pre owned volume licences are previously issued Microsoft licences that are no longer used by the original owner and have been legally resold in accordance with the UsedSoft ruling of the European Court of Justice, case C 128/11 from 2012. The software is identical to a new licence, with the same applications, the same features, and the same activation through Microsoft. The difference is in the price: pre owned licences are up to 70% cheaper than the new price.
Pre owned licences originate from the Open License and Volume Licensing era. They are perpetual licences that were once issued through an official Microsoft licensing programme and have since become available on the secondary market, for example because the original owner switched to Microsoft 365 or the company closed down. The supplier, in this case Softtrader, verifies the origin and ownership of every licence and provides all documentation required in a Microsoft-audit when the licence is purchased.
CSP vs pre owned: the differences at a glance
| Feature | CSP, perpetual | Pre owned volume licence |
|---|---|---|
| Price | Microsoft new price through a CSP partner, possibly with partner discount | Up to 70% cheaper than the new price |
| Ownership | You own the licence after purchase | You own the licence after purchase |
| Licence term | Perpetual, no subscription | Perpetual, no subscription |
| Software Assurance | Not available with CSP perpetual | Not applicable, purchased separately |
| Registration | Microsoft 365 Admin Center | Not in VLSC or Admin Center; compliance through licence documentation |
| Activation | MAK key, Multiple Activation Key | MAK key or KMS |
| Audit proof | Yes, registration in Admin Center | Yes, invoice plus licence agreement |
| Updates | Security updates during the support period | Identical: the same updates during the support period |
| Available products | Broad: Office, Windows Server, SQL Server, CALs | Broad: Office, Windows Server, SQL Server, CALs, Exchange, RDS |
| Minimum purchase | No minimum, per licence | No minimum, per licence |
| Legal basis | Microsoft Customer Agreement, MCA | UsedSoft ruling EU, C 128/11, 2012 |
The core difference is simple: CSP perpetual licences and pre-owned volume licences deliver exactly the same software. The licensing rights are identical, the activation is identical, and the security updates are identical. What differs is the price and the purchasing channel.
Would you like to know how much you can save with pre-owned licences compared with CSP? At Softtrader, you can buy pre owned Microsoft Office 2024, Windows Server 2025, and SQL Server 2025 with savings of up to 70%. Receive your tailored quote within 24 hours.
When is CSP the better choice?
CSP licences are the logical choice if you want to purchase cloud subscriptions such as Microsoft 365 and Azure, together with perpetual licences, through one partner and on one invoice. The CSP model offers centralised management through the Microsoft 365 Admin Center, which is useful if your IT administrator wants to see all licences in one place. In addition, CSP is the only channel for software subscriptions such as Windows Server Subscription and SQL Server Subscription if you want an annual subscription rather than a perpetual licence.
CSP is also the right channel if you want to make use of Software Assurance benefits through the Open Value programme, which is still available alongside CSP, or if you need the added services of a Microsoft partner, such as implementation, migration, or management.
When are pre owned licences the better choice?
Pre owned licences are the smartest choice if your main goal is to pay the lowest possible price for perpetual Microsoft software. Savings of up to 70% compared with the new price are greatest for products that you want to keep using unchanged over a longer period, such as Office 2024 LTSC, supported until 2029, Windows Server 2025, supported until 2034, and SQL Server 2025, supported until 2036.
Pre owned is also relevant if you already have an existing IT infrastructure and do not need the cloud and management services of a CSP partner. You buy the licence, receive the documentation, and activate the software yourself, or through your own IT department. No partner relationship is required, there is no subscription, and there are no ongoing costs.
Finally, pre owned licences are particularly suitable for IT resellers who sell licences on to their own customers. Softtrader supplies more than 1,100 IT resellers across Europe and offers a reseller programme with white label delivery.
The common mistake: thinking there is no alternative anymore
After the closure of Open License, many small and medium sized organisations got the impression that perpetual licences were no longer available and that a Microsoft 365 subscription was the only option. That is not the case. Perpetual licences are still available, both through CSP, at the new price, and through the pre owned market, with savings of up to 70%.
The rising cost of Microsoft 365, including price increases from July 2026 of 5% to 33% and the new E7 Frontier Suite at €93 per user per month, makes the one time purchase alternative more relevant than ever. The six disadvantages of Microsoft 365, ongoing costs, vendor lock in, unwanted updates, and paying for unused features, do not apply to perpetual licences, regardless of whether you buy them through CSP or pre owned. Exactly how large the savings are depends on the Microsoft 365 package and the number of users. In the TCO comparison of Microsoft 365 versus on premises Office over five years, we calculate the difference in detail.
FAQs
Has the Open License Program really ended?
Yes, permanently since 1 January 2022. Existing licences that were bought through Open License before that date remain fully valid. New purchases through Open License are no longer possible.
Can I still buy perpetual licences through CSP?
Yes. The CSP programme offers perpetual licences for products such as Office, Windows Server, SQL Server, and CALs. The licences are no longer registered in VLSC, but appear in the Microsoft 365 Admin Center.
Are pre owned licences legal?
Yes. The European Court of Justice confirmed in the UsedSoft ruling, case C 128/11 from 2012, that perpetual software licences may be resold within the European Union. Softtrader verifies the origin of every licence and provides all documentation required in an audit when the licence is purchased. You can read more about this in Cheap Microsoft licences: reliable and legal?
What is the price difference between CSP and pre owned?
CSP perpetual licences are sold at Microsoft’s new price, sometimes with a partner discount. Pre-owned licences are up to 70% cheaper than that same new price. The software is identical.
Do pre owned licences pass a Microsoft audit?
Yes. On delivery, you receive an invoice and a licence agreement. This documentation is your proof of ownership in the event of a Microsoft audit. Softtrader guarantees that all delivered licences are audit proof. You can read more about the audit process in Microsoft audit: complete overview.
Do you have another question? View our full FAQ or contact our team.
Looking for the most cost effective alternative to Microsoft licences? Explore the full range of pre-owned Microsoft licences at Softtrader and save up to 70% compared with the CSP new price. Receive your tailored quote within 24 hours, or call us directly on +31 24 202 21 03.
