Saturday 10 November 2007

What is OEM Software and Why d0 you care ??

To: Bradley Gonzalez
Subject: Re: What is OEM Software and Why d0 you care ??

Dear Mr Gonzalez,

Two very good questions. Let me take them in order:

OEM Software is a term used to differentiate that version of the software which is bundled with other hardware or software from that same software package sold on its own as a retail package. The packaging and legal rights that come with the OEM versions of a software package generally differ from what is provided with the retail versions. The functionality of the software is often the same, but it is quite common for the OEM version to be a version with reduced functionality.

I care because utilising OEM Software is a popular business strategy which taps into the original manufacturer’s ability to drive cost out of production of the product through manufacturing economies of scale; thereby being able to pass on a more competitive purchase price to the reseller which, in turn, makes each partner in the transaction more competitive.

I hope this answers your questions. Please don’t hesitate to contact me if you require any further information.

Best wishes,
Simon

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