what is OEM ?

What is OEM ?

OEM stands for Original Equipment Manufacturer. OEM software is sold by the software creator to a hardware manufacturer. For example, Microsoft will sell OEM versions of Windows and Office to companies like Dell or Gateway, at volume discounts. Dell and Gateway are then able to sell you the PC, complete with software, at a reasonable price. If you bought a PC from one of these companies, chances are that in the box, you found a handful of CD-ROMs with all kinds of software on them. No manuals, no instructions - just the CDs. These CDs are OEM software.

Sometimes, people and/or companies will not use the OEM software that came with their computer, and so they decide to sell the software, usually very inexpensively. If you need the software, it's a great way to save tens or hundreds of dollars off of the retail, boxed version you would buy in the store.

There ARE restrictions, however. Some OEM software comes with a restrictive license that says it can only be used with the hardware it originally came with. So, if you got an OEM version of CD-burning software, the license may restrict you to using the software ONLY with the CD-burner that came with your PC. These licenses, while restrictive, are also unusual.

There are two types of OEM when it comes to operating systems. The first is when a pre-built computer is purchased, there is an OEM disk that comes with the system, which can not be transferred to any other system, because that disk is designed to run only with the specific system components. The second type of OEM operating system is one that can be purchased, and that can be transferred to any other system, without the dependence on the systems components. The main difference between the two is that one is only meant for that specific system, and the other can be used on any system.

Academically priced software OR student editions is a software package offered to students and teachers at a substantially discounted price compared to the software's retail price. "Academic Discounts" or "Education Discounts" allow students and teachers alike the opportunity to own the software they need at much more affordable costs. The discount varies and can be as high as 80-90 %.

Academically priced software benefits the student by allowing them to become familiar with the technology prior to using it in a for-profit setting, and benefits the software company because students who use their software while they are in school tend to favor the same software they used in school, when they enter the working world.

Academically priced software is generally identical to the commercial version of the software, except that academically priced software is typically not licensed for commercial or for profit use (i.e. it can only be used in an academic setting). Engineering software will often print with a watermark around the border of a page, noting that the software is for "Education Use Only."

Academically priced software packages can come with little or no printed instruction manual, with the understanding that students using the software will be taught how to use it by professional instructors, and therefore have less need for a printed manual. This provides a cost savings for the manufacturer, who can then pass the savings on to the student. An electronic manual is typically provided in lieu of a printed manual.

Academically priced software is sometimes not eligible for upgrade and crossgrade discounts, though in many instances there are upgrades to the commercial version available as well.