What is OEM Software?

OEM stands for "original equipment manufacturer" and OEM software is a phrase that refers to software that is sold to computer builders and hardware manufacturers (OEMs) in large quantities, for the purpose of bundling with computer hardware.

OEM software is a fully-functional version of the product that can be purchased at a discount with a new computer because the system builder sells in large quantities and passes the savings on to the buyer.

What is the difference between OEM and retail versions of software?

Other than the price and the packaging, there is little difference between the two. OEM software is sold at the lower price without the box packaging because it is sold in large quantities and generally the manufacturers of the software do not provide after sale support. However when compared to retail box software very little is supported by the manufacturers anymore.