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Can I use OEM software for company computers?

Kremerica

Kremerica

Senior member
All,
I have been asked to quote some software pricing for my work. They have about 40 computers and they have a lucrative project management business. I DO NOT want to buy software that is in any way illegal.

I have seen online many places where I can buy OEM software for very cheap, for example, I got a quote from CDW for project 2007 standard and they quoted roughly $500 per license. But I goto a software website, and an OEM copy is roughly $150 per license.

What are the legalities of using an OEM license for company computers?

I called 3 different microsoft representatives and asked them these questions, I explained the situation, business use, multiple computers, and the CSR said it was perfectly legal for me to use OEM software, I just wouldn't get support from Microsoft. (We have an IT company contracted for server and computer work, so they are our support.)

anyone have any input based on facts, not opinions?
 
What MS said is correct. With OEM software, you get no help at all from Microsoft.
In the case of operating systems, you might have issues with activations, if hardware
changes. But that is not always the case with programs such as Office ... OEM will
have all the features of retail, but as noted, no support or user manual, except for
built in help files. Legally, you should be fine as long as you buy 1 license for each
computer you install it on. Or contact MS for a Volume License, which in some cases,
may be less costly
 
Yeah I called a couple times, talked with 3 different CSRs and all the times they offered volume licensing. The main selling point was that if I had 5000 computers, I wouldn't have to keep each COA, Serial Number, etc. for each of the 5000 computers stored in a room or file somewhere, the volume license would be much easier to manage the licenses. But since I have roughly 40 computers, then OEM is much cheaper.
 
Originally posted by: redbeard1
Normally OEM needs to be sold with a new computer. What is the requirements for that with Office?
Click to expand...

The above is what opinions online say, but I find it hard to believe that Fry's would sell OEM software in a retail locations if it can only be sold with a new computer. I think any system builder can buy the software. Fry's link

I get different opinions, but the customer service people at the number I listed in the OP, don't have any incentive to sell certain types of software, so why would their information be incorrect?

its just tough because everyone says different things and its not a cut and dry answer.

From my phone conversations, it seems that anyone can buy OEM software, the risk is that authorized microsoft resellers don't sell it, they bundle it with PCs, so you have to buy it from smaller less well known stores that might sell you bootleg software.

I mean even newegg sells oem software to people. Newegg OEM Office
 
Originally posted by: redbeard1
Normally OEM needs to be sold with a new computer. What is the requirements for that with Office?
Click to expand...

I think you have it a bit off. Normally the OEM software titles are sold with a piece of hardware such as what Newegg does with Office or Windows and along with it comes an IDE cable. I'm not 100% certain if they still do this or if they now just sell the software outright.
 
Originally posted by: Kremerica
Yeah I called a couple times, talked with 3 different CSRs and all the times they offered volume licensing. The main selling point was that if I had 5000 computers, I wouldn't have to keep each COA, Serial Number, etc. for each of the 5000 computers stored in a room or file somewhere, the volume license would be much easier to manage the licenses. But since I have roughly 40 computers, then OEM is much cheaper.
Click to expand...

Keep in mind that OEM software is tied to the machine on which it is installed. If you retire the machine, you retire the OEM software with it. Volume licensing is much easier to keep track of, and if you upgrade machines, you don't need to worry about purchasing new software.
 
Originally posted by: MrChad
Originally posted by: Kremerica
Yeah I called a couple times, talked with 3 different CSRs and all the times they offered volume licensing. The main selling point was that if I had 5000 computers, I wouldn't have to keep each COA, Serial Number, etc. for each of the 5000 computers stored in a room or file somewhere, the volume license would be much easier to manage the licenses. But since I have roughly 40 computers, then OEM is much cheaper.
Click to expand...

Keep in mind that OEM software is tied to the machine on which it is installed. If you retire the machine, you retire the OEM software with it. Volume licensing is much easier to keep track of, and if you upgrade machines, you don't need to worry about purchasing new software.
Click to expand...


Chad,
Agreed I do see the benefits of volume licensing, but cost is our main motivator. We have looked at computer life at our company and find that we keep computers roughly 5 years and have only had 1 instance of a motherboard failure. So from a cost perspective the OEM licenses will pay for themselves over time.

After talking with another somewhat more knowledgeable CSR at Microsoft, he directed me to the OEM licensing agreement...

OEM License Link
(If you can't get the PDF link, you can goto MS website and search for OEM license)

It appears that a person has a couple ways in which to buy and use OEM software legally.

The main thing I notice is the definition of "system builder."

5th sentence: ?System builder? means an original equipment manufacturer, or an assembler, reassembler, or installer of software on computer systems.

Someone who installs software can be considered a "system builder." So in this instance, I am considering myself a system builder. I accept all the liability of the system builder. Meaning I can't get tech. support from MS. I am suppose to provide tech. support to anyone who buys the installed product from me. I can't return the package once opened. The license is only good on the computer it is installed on, and cannot be transferred etc.


Sentence 2: "You accept this license when you open this package."
Sentence 4: "If you do not open this package, you may distribute it to another system builder."

If I were to buy un-opened OEM software, it would fall into this category. The 4th sentence allows me to legally buy (AND sell) it from/to internet sites or companies that also claim to be "system builders." I'm no lawyer, but buying it is legal in my mind.


Then, when the package is opened, this is when you must agree to the rest of the license. This means you install it on a "fully assembled computer system? and it lives and dies with that machine.





OK, now with all that said and done, there is one wrinkle!

While looking around at the OEM license. I searched MS' site and found a System builder license for January 2007 and newer OEM software. (but not office 2007)

System Builder license WEBPAGE

January 2007 and newer OEM System Builder License PDF

In the above 2007 OEM license, MS more clearly states that you must be a "pre-installer" of software to be considered a "system builder."

This is still open for interpretation. I think that if I build or buy a barebones system, and I install the software before an "end-user" gets the computer, then I am still considered a "pre-installer." (just my thoughts)
Others might claim a preinstaller is something different.

MS also more clearly states the definition of a "fully assembled computer." And I thought it was interesting that instead of having just a "hard drive" the computer can have flash (NAND) memory now.

(I am still looking at the 2007 license in more depth)

At this point, I have convinced myself that as long as I meet the definition of "system builder" and I purchase sealed OEM packs from other "system builders" then I am fully within the license terms of MS OEM software.

tell me what you think.
 
Originally posted by: Nocturnal
Originally posted by: redbeard1
Normally OEM needs to be sold with a new computer. What is the requirements for that with Office?
Click to expand...

I think you have it a bit off. Normally the OEM software titles are sold with a piece of hardware such as what Newegg does with Office or Windows and along with it comes an IDE cable. I'm not 100% certain if they still do this or if they now just sell the software outright.
Click to expand...

Check out the licenses, this is where everyone gets their information confused, (including myself) I always thought it had to be with a peice of hardware, but if the package is sealed it doesn't have to be sold with anything. If its opened though, it has to be sold with a fully assembled computer...


see licenses for clarity
 
Originally posted by: handoverfist
So this means I can sell my copy of Vista legally without any hardware? 😀
Click to expand...

In my opinion, you can buy or sell any Sealed OEM software from MS that is covered under this OEM license as long as you and the party you are dealing with are under the definition of "system builder." No hardware required.

Now on the other hand, if the package is open, it can only be bought or sold with a fully assembled computer that falls under that definition.



 
Call Dell and get VLK and be done with it.
They had the best pricing I could find. OEM and keeping track of COAs for 10+ PCs is a stupid waste of time. VLK is what this is made for.
 
The only oddity about the ms system builder license is you must the OEM Preinstallation Kit
to install the software .. sort of like installing from an image ... other than that, you will be fine.
MS provides that either with the cd's or you download it from them. And since you will be
preinstalling the programs before the computers are put in use, you are fine. Even if they are in
use, you are the IT Dept and let's say users are not allowed to install apps. Only you can as IT
Admin .. so again you are fine.
 
Originally posted by: Homerboy
Call Dell and get VLK and be done with it.
They had the best pricing I could find. OEM and keeping track of COAs for 10+ PCs is a stupid waste of time. VLK is what this is made for.
Click to expand...


This may be true if you have 250+ computers, but all the OEM pricing I got was cheaper than VLK licensing.
It takes us 2 minutes to put a label on a zip lock bag and a label on the computer, and only adds a couple cents to the cost. Then throw the plastic bag on the shelf in the server room and bam, everything is tidy.

I even found the retail box version of project 2007 cheaper than dell or CDW would give me for VLK.
 
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