A Better Understanding of "OEM" Software

Most software publishers make available an "OEM" version of their products. What exactly is "OEM" software?

Literally speaking, "OEM" stands for Original Equipment Manufacturer. This term refers to independent builders of computer systems who design their hardware with "original" or unique parts. These parts are built or acquired according to the specifications of the builder, and result in machines which are original or unique from other name-brand machines.

An "Original Equipment Manufacturer" can be as big as DELL Corporation or Hewlett-Packard, and yet as small as your local computer store who builds two or three new computers a week.

Most software publishers feature a retail-box product with an attractive point-of-sale package, enclosed literature or manual, and a telephone or email support line for after-sale technical help for the end-user customer.

But the publisher also likes to make available to original equipment manufacturers and system builders a lower-cost, no-frills version of the same software product. Why lower-cost? ---because the publisher wants to give the OEM builder an incentive to bundle the software product with every machine the builder produces....and, in return, the system builder assumes the responsibility of after-sale technical support of the product.

Think of OEM software as one of the most successful ways for a publisher to brand its product by making it available to a wider audience which is, in effect, built into every machine. OEM software is also a great way for a manufacturer of computers or an installer of hard drives to give his end-user customer an instant menu of the latest and most popular software programs, thus sparing the end-user the hassle of making his/her own installations.