View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
March 9, 1988


By CBR Staff Writer

On of the biggest merchant banks is seeking to pioneer the leasing of computer software in the UK. The move will potentially enable software companies who charge only one-time licences to win more business, and enable users to improve their cash flow by spreading the time over which they can pay for their software. Bristol-based Pallas Leasing Ltd, a subsidiary of S G Warburg Securities and until now primarily a writer of leases on photocopiers for the likes of Canon, Ricoh and Minolta is offering the lease contracts on software. The Inland Revenue said it wants to review the situation with its internal specialists before commenting on the matter, but Pallas insisted it has clearance for the move: up to now it has been uneconomic for leasing companies to finance software contracts because a leasing company could not prove ownership of software, which normally has only a licence to use attached to it. Pallas has launched a scheme under which it buys software licences from software houses or hardware manufacturers and sub-issues them to specified customers under a lease agreement. Pallas is planning to write leases on a wide range of mainframe, mini and micro systems and applications software but was not prepared to name any products. It said that it has already done lease deals with users – in a pilot scheme last year, the average value of contract was UKP75,000 – , but again refused to name any customers at this stage. Although one of the most tempting areas of business for Pallas would be system software on IBM mainframes, IBM made it clear that it does not allow the issuing of sub licences for its software and has not signed any agreement with Pallas.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.