Windows Vista Ultimate OEM Other Vista Discussions Discuss Windows Vista Ultimate OEM in the Windows Vista forums; For those who may not care if they get that nice new packaging, Newegg has a pretty decent price for the Windows Vista Ultimate Full Version DVD for $199.99. ...

[dsljay]

For those who may not care if they get that nice new packaging, Newegg has a pretty decent price for the Windows Vista Ultimate Full Version DVD for $199.99.
http://www.newegg.com/Product/Produc...82E16832116213

[Znod]

The price looks very good. It's close to what I think the educational pricing will be. But, now for a little hijacking. Help me here.

I may never understand the use of OEM when it comes to software. My understanding of what is going on much of the time is as given below in Wikipedia.

"An original equipment manufacturer (frequently abbreviated OEM) is a company that builds products or components that are used in products sold by another company (often called a value-added reseller, or VAR). An OEM will typically build to order based on designs of the VAR. For example, hard drives of computer systems may be manufactured by a corporation separate from the one marketing the computers, or a loudspeaker in a stereo system made by a company that specializes in audio manufacturing.

In some usages, a VAR is sometimes called an OEM, despite this being a complete reversal of the literal meaning of both terms. This confusion arises from use of the term OEM as a verb: for example, a VAR might say that they are going to OEM a new product, meaning they are going to offer a new product based on components from an OEM."

Then, addressing software specifically, Wiki goes on to say:

"OEM, when used to describe software, is 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."

OK, fine, so far everything is consistent. The only problem is that OEM is being used "strangely" much of the time.

But, now, Newegg describes its offering as OEM, which is inconsistent with what Wiki says is meant by OEM when this term is applied to software. So, why is the Newegg version being referred to as OEM--as opposed to retail? Does Newegg refer to the software as OEM, rather than retail, simply because of the absence of a fancy box?

OK, someone please explain to me what OEM means in the Newegg offering. I think that the use of OEM, when it comes to software, is completely confusing.

[jayaustin]

Not confusing at all. OEM software is intended for system builders of a new PC. It is so we do not have to pay the full retail price of the OS. Think what would dell or hp or even a small shop like mine would have to charge if we paid full price for an OS (even at wholesale costs). The reduced cost is the reason that the license is tied to the motherboard of the computer it is installed on. It is also the reason that a major hardware componant purchase is required at the same time. The OEM version only comes with the disk, EULA, and COA. There is no box or documentation that comes with it.

MS does include the home user building their own system as an OEM. That is why companies like newegg carry it. OEM software is not allowed to be used for upgrading an existing computer without upgrading some componant. For instance, if you had a XP box that you wanted to upgrade to Vista you are not supposed to use the OEM software. You should use an upgrade version. However, if you were upgrading a componant like the CD/DVD drive or another componant, you are allowed to purchase the OEM version. The retail version is intended for those that do not qualify for an upgrade version and are not upgrading or building a new system.

Look at Nero for instance. The OEM software that comes with many DVD drives is a reduced functionality program. It does not have all the features that the full retail version has. MS does not limit the OEM software. It is the same as the retail version.

[Znod]

Thanks Jay:

I like parts of your interpretation. But, you mention these things specifically:

"It is also the reason that a major hardware componant purchase is required at the same time. The OEM version only comes with the disk, EULA, and COA [also Key]. There is no box or documentation that comes with it.

MS does include the home user building their own system as an OEM. That is why companies like newegg carry it. OEM software is not allowed to be used for upgrading an existing computer without upgrading some componant."

However, Newegg does not require any of the things mentioned above. I do agree that OEM is only to be used on one computer--i.e., MS modifies the rights, but not the functionality. But, as a side note, retail can only be used on two computers--sequentially (and "two" may be the same computer upgraded substantially). Regardless, I still think that there is a great deal of confusion about the OEM terminology. There seem to be a variety of nuances on the OEM theme.

[crabby]

Znod, the retail edition was updated so that it may be transferred as many times as you like And if you don't purchase hardware with the software, you have to have receipt of hardware purchased near the same time (apparantly) that makes up a FULL PC.

crabby

[jayaustin]

OK, the rules have changed. I have yet to build a vista box for sale so had not looked at the rules before now. I also do not sell OEM software.

Here were the old rules for windows OEM software purchase:

If the pack was opened, the enclosed individual software license(s) for Windows desktop 
operating systems had to be distributed

   1. preinstalled on a fully assembled computer system or
   2. to another system builder with a non-peripheral computer hardware component.

If distributed with non-peripheral hardware, the acquiring system builder had to accept the 
license agreement and the distributing system builder had to keep records of the 
distribution to show that this requirement was met.

Here are the new rules for windows OEM software purchase:

If the pack is opened, the enclosed individual software license(s)

    * must be distributed with a fully assembled computer system and
    * must be preinstalled.

The individual software license(s) inside the pack can no longer be distributed with a
non-peripheral computer hardware component.
With the new 1-pack, the unopened package can be distributed to another system builder by 
itself, without any hardware requirement.

That is taken from the Microsoft OEM system builder site. It is restricted to system builder members so I posted the rules so everyone can see them. The site does go on to say:

OEM system builder software packs are intended for PC and server manufacturers or
assemblers ONLY. They are not intended for distribution to end users. Unless the end 
user is actually assembling his/her own PC, in which case, that end user is considered 
a system builder as well.

The COA includes the key. That is why I didn't include key above. The retail version only allows you to activate the key on one computer at a time. You can however, transfer the license to another computer if you remove it from the first computer before installing it on the second. They were going to limit it to only one transfer but removed that limitation. You can transfer the license of the retail version as many times as you want.

[felix8406]

So what I gather from the information above, Newegg can sell an OEM version to a user by itself, with no accompany hardware. It will be the responsibility of the user to make sure that the software is to be used in a PC that he/she is assembling or has assembled. Am I correct?

And yes, the licensing method for the retail version of Vista was changed a while back due to the many complaints by consumers.

[Znod]

Thanks crabby. I had forgotten about the change; right, it now works like XP.

Originally Posted by crabby

Znod, the retail edition was updated so that it may be transferred as many times as you like And if you don't purchase hardware with the software, you have to have receipt of hardware purchased near the same time (apparantly) that makes up a FULL PC.

crabby

[Znod]

Thanks Jay. The rules statements you provide help a lot. So, now it all makes sense again, except for what Newegg is doing--which is what got me started on the OEM thing in the first place. Oh, and my COA's and keys are separate so I don't know what you mean by the COA includes the key. To some extent, each is "worth less" without the other. And, right, as indicated to crabby, I had forgotten about the transferability change--prompted by a comment made on Newegg to the contrary.

[Znod]

Originally Posted by felix8406

So what I gather from the information above, Newegg can sell an OEM version to a user by itself, with no accompany hardware. It will be the responsibility of the user to make sure that the software is to be used in a PC that he/she is assembling or has assembled. Am I correct?

And yes, the licensing method for the retail version of Vista was changed a while back due to the many complaints by consumers.

I think you are correct provided the assembler is not the end user. That's what started me wondering about what Newegg is doing; it looks to me like it is taking no precautions to make sure that the assembler is not the end user. I wonder if MS obligates OEM sellers to obtain such assurances and if Newegg is shirking its responsibiity.