While this article is intended to enlighten consumers and organizations on the benefits of purchasing refurbished computers, it does in no way promote Microsoft or any of its products. The next article in this series will focus on the prevailing myths about refurbished computers and the truth behind those myths. This knowledge series is sponsored by YNew (Microsoft Registered Refurbisher based out of Hyderabad), a pioneer in re-commerce solutions, striving to set benchmark for sale & service of refurbished computers while working closely with renowned refurbishers across India.You can visit their website to download a whitepaper on refurbished computing. Being an early mover, Microsoft stands to gain in the long run as this could become a sizeable revenue channel in future. Thus, it makes sense for Microsoft to take advantage of this growing market by offering its products to cost conscious customers. The awareness is spreading fast and wide as more and more such organizations are coming into the 'refurbished' fold. Overall, the refurbished market is witnessing significant growth predominantly in MSME sector, schools, colleges and non-profit organizations. With the awareness on refurbished PCs growing rapidly among consumers, this figure is expected to rise steeply in the future. Assuming 15 percent of this volume (an increase of 5 per cent from 2004 figures) going into secondary markets as refurbished devices, Microsoft currently has an opportunity to sell its Windows products to 47 million PCs. In 2014, about 316 million Windows-based PCs were shipped globally. This move, a calculated one, opened up a big market opportunity for Microsoft.
'More than 10% of the total PCs manufactured in the world is going into secondary markets as refurbished computers'. This prompted Microsoft to step in and tweak its volume licensing and allow for genuine versions of Windows on the refurbished PCs.
In the process, the refurbished lacked the resources to recover software licenses from the original users. The study revealed that more than 10 per cent of the total PCs manufactured were being refurbished around the world and released into the secondary markets. It goes back to 2004 when Microsoft tied up with Gartner, a global market research company, to study and understand the secondary market for PCs. Microsoft has strict rules for distributing Citizenship license and refurbishers are bound to ensure that the recipients of Citizenship license are qualified as per the conditions laid out by Microsoft. This license comes at rock bottom prices to help reduce the financial burden on the student community and non-profits. (b)Citizenship License: This is the second type of license intended only for educational institutions, non-profit charitable organizations and other Microsoft approved recipients.
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