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OEM VS Normal, Why the price difference

R

russell2002

Senior member
Dabs.com (UK Supplier, competitive prices) has

Microsoft Windows Vista Business OEM £93.08

Microsoft Windows Vista Business £269.99

Thats some difference.
 
Something is strange about their Vista Business pricing. OEM is typically about 1/2 the price of Full Retail. But I see a couple of other U.K. vendors selling it for that same price range. Strange....
 
Originally posted by: sonoma1993
for the most part, oem doesn't come with support from microsoft, a manual, and the fancy package
Click to expand...

Correct, but perhaps the most important difference between OEM and Retail is the transfer clause in the EULA.

[*]OEM is tied to the original computer that it's installed on. If you replace the motherboard for upgrade purposes you have a new computer and need a new license to stay "legal". If you install it on another computer that is also against the EULA and you're committing casual piracy.

[*]Retail full version can be transferred to a new computer an unlimited number of times as long as it's only on one computer at a time.
 
I just got vista home premium full version for $99 oem you can't beat that price. I just upgraded all my hardware before this, so I wouldn't be changing any hardware in my computer for at least 2 years. So for me that $99 oem is perfect. I don't need all the stuff that comes with ultimate home premium seems to be the sweet spot for vista users. So oem doesn't have the packaging or the manual or the MS support or the ability to transfer your vista to another computer but its like 50% cheaper. So if you know you not doing any upgrades for a while get oem 🙂
 
It's also worth noting that the Retail version comes with both 32 and 64 bit install DVDs, while OEM is one or the other. It *may* be possible to use a 32bit OEM key with a 64 bit disc (and vice versa), but who knows if they key is tied to the version. I won't be running 64 bit vista right away, but in a year or two I will seriously consider it, and I don't want to be stuck with buying Vista OEM 64 if I've already purchased the OEM 32 bit version. Just something to consider.
 
Originally posted by: butch84
It's also worth noting that the Retail version comes with both 32 and 64 bit install DVDs, while OEM is one or the other. It *may* be possible to use a 32bit OEM key with a 64 bit disc (and vice versa), but who knows if they key is tied to the version. I won't be running 64 bit vista right away, but in a year or two I will seriously consider it, and I don't want to be stuck with buying Vista OEM 64 if I've already purchased the OEM 32 bit version. Just something to consider.
Click to expand...

The academic version of vista comes with only the 32bit version but you can order a 64bit disc from microsoft for a small fee. This leads me to believe that the key is good for either version.
 
Originally posted by: John
Originally posted by: sonoma1993
for the most part, oem doesn't come with support from microsoft, a manual, and the fancy package
Click to expand...

Correct, but perhaps the most important difference between OEM and Retail is the transfer clause in the EULA.

[*]OEM is tied to the original computer that it's installed on. If you replace the motherboard for upgrade purposes you have a new computer and need a new license to stay "legal". If you install it on another computer that is also against the EULA and you're committing casual piracy.

[*]Retail full version can be transferred to a new computer an unlimited number of times as long as it's only on one computer at a time.
Click to expand...
Another facet: you can sell Retail editions off by themselves when you're done with them, recouping some of your up-front cost. OEM can only be sold with the computer it's "married" to. For some peoples' upgrade paths, that might work out fine too, of course 🙂

 
Originally posted by: Shawn
It's just another way to rip off the consumer.
Click to expand...

How is that a rip-off? You are giving a discount for agreeing to use it only on one PC. Heck, look at those quoted prices? You'd have to migrate to over 2 machines before the OEM wasn't a better choice than retail. How many people are really going to move to two seperate machines before buying another OS?
 
Originally posted by: mechBgon
Originally posted by: John
Originally posted by: sonoma1993
for the most part, oem doesn't come with support from microsoft, a manual, and the fancy package
Click to expand...

Correct, but perhaps the most important difference between OEM and Retail is the transfer clause in the EULA.

[*]OEM is tied to the original computer that it's installed on. If you replace the motherboard for upgrade purposes you have a new computer and need a new license to stay "legal". If you install it on another computer that is also against the EULA and you're committing casual piracy.

[*]Retail full version can be transferred to a new computer an unlimited number of times as long as it's only on one computer at a time.
Click to expand...
Another facet: you can sell Retail editions off by themselves when you're done with them, recouping some of your up-front cost. OEM can only be sold with the computer it's "married" to. For some peoples' upgrade paths, that might work out fine too, of course 🙂
Click to expand...
Actually, you cannot "sell" the retail copy either. The revision of the license terms was changed to:
You may uninstall the software and install it on another device for your use. You may not do so to share this license between devices.
Click to expand...
This allows you to transfer it to another machine that YOU own, but still does not allow transfer to a 3rd party.
 
for the most part, oem doesn't come with support from microsoft, a manual, and the fancy package
Click to expand...

My OEM HPx64 from OcUK came in DVD case,basic 40 page Distribution manual was included,OEM licence key sticker for pc case and Microsoft readme leaflet plus OEM cardboard case(DVD case was inside).
 
Originally posted by: bsobel
You are giving a discount for agreeing to use it only on one PC. Heck, look at those quoted prices? You'd have to migrate to over 2 machines before the OEM wasn't a better choice than retail. How many people are really going to move to two seperate machines before buying another OS?
Click to expand...
Yeah, if you are building a machine from scratch, with no previous version license available, then OEM seems the way to go. Especially since it appears, historically, that you've got a reasonable chance that Microsoft will let you change motherboards, even with an OEM license.

And, given how quickly motherboard manufacturers change their models, in the event of a motherboard "failure", you could argue that an exact replacement isn't available, so that's why you should be entitled to use that "new motherboard". I'm guessing that Microsoft will have a difficult time enforcing the rule against moving "generic OEM" software, and will continue to be "generous" in enforcing that rule.
 
Originally posted by: Hurricane Andrew
Actually, you cannot "sell" the retail copy either. The revision of the license terms was changed to:
You may uninstall the software and install it on another device for your use. You may not do so to share this license between devices.
Click to expand...
This allows you to transfer it to another machine that YOU own, but still does not allow transfer to a 3rd party.
Click to expand...
Microsoft Home, Home Premium, Ultimate Retail Version EULA

"16. TRANSFER TO A THIRD PARTY.
a. Software Other Than Windows Anytime Upgrade. The first user of the software may
make a one time transfer of the software, and this agreement, directly to a third party. The first user must uninstall the software before transferring it separately from the device. The first user may not retain any copies.
b. Windows Anytime Upgrade Software. You may transfer the software directly to a third
party only with the licensed device. You may not keep any copies of the software or any earlier version.
c. Other Requirements. Before any permitted transfer, the other party must agree that this agreement applies to the transfer and use of the software. The transfer must include the proof of license."

Also, notice that Microsoft keeps using the term, "first user". I believe that's because of Microsoft's worry about "Restraint of Trade" rules. NOWHERE is there any limitation shown for subsequent users of the software. I keep wondering how much of this stuff applies to that "second user"?
 
Actually, you cannot "sell" the retail copy either. The revision of the license terms was changed to:
You may uninstall the software and install it on another device for your use. You may not do so to share this license between devices.
Click to expand...
This allows you to transfer it to another machine that YOU own, but still does not allow transfer to a 3rd party.
Click to expand...
Vista Ultimate Retail EULA in PDF form.
16. Software Other Than Windows Anytime Upgrade. The first user of the software may
make a one time transfer of the software, and this agreement, directly to a third party. The first
user must uninstall the software before transferring it separately from the device. The first user
may not retain any copies.
Click to expand...
Looks pretty clear to me that retail Vista, like retail WinXP, can be resold without the computer. Ooops, RebateMonger beat me to it 😱
 
Here are all of the Vista OEM EULA's that I pulled from my OEM copy of Home Premium.

If you comply with these license terms, you have the rights below for each license you acquire.

1. OVERVIEW.

  • a. Software. The software includes desktop operating system software. This software does not include Windows Live services. Windows Live is a service available from Microsoft under a separate agreement.

    b. License Model. The software is licensed on a per copy per device basis.

    c. Edition Specific Rights. See the Additional License Terms sections at the end of this agreement for license terms that apply to specific editions of the software.

2. INSTALLATION AND USE RIGHTS. The software license is permanently assigned to the device with which you acquired the software. That device is the ?licensed device.? A hardware partition is considered to be a separate device.

  • a. Licensed Device. You may install one copy of the software on the licensed device. You may use the software on up to two processors on that device at one time. You may not use the software on any other device.

    b. Number of Users. Except as provided in the Device Connections (all editions), Remote Access Technologies (Home Basic and Home Premium editions) and Other Access Technologies (Ultimate edition) sections below, only one user may use the software at a time.

    c. Alternative Versions. The software may include more than one version, such as 32-bit and 64-bit. You may use only one version at one time. If manufacturer or installer provides you with a one-time selection between language versions, you may use only the one language version you select.

15. TRANSFER TO A THIRD PARTY. You may transfer the software directly to a third party only with the licensed device. You may not keep any copies of the software or any earlier version. Before any permitted transfer, the other party must agree that this agreement applies to the transfer and use of the software. The transfer must include the Certificate of Authenticity label.
 
Originally posted by: John
2. INSTALLATION AND USE RIGHTS. The software license is permanently assigned to the device with which you acquired the software. That device is the ?licensed device.? A hardware partition is considered to be a separate device.

  • a. Licensed Device. You may install one copy of the software on the licensed device. You may use the software on up to two processors on that device at one time. You may not use the software on any other device.
Click to expand...
This seems to be the key part. However, the big question is how to define "device"? Does "device" mean just the hard disk? Cause that's literally where the one copy of the software is installed to. Or does "device" mean the collection of hardware parts including motherboard, processor, ram, hard disk, dvd-rom drive, and video card (if not integrated)?

And if it's the collection of parts that define the device, how much can change before it's not considered the same device?
 
Originally posted by: RebateMonger
Originally posted by: crimson117
This seems to be the key part. However, the big question is how to define "device"? Does "device" mean just the hard disk?
Click to expand...
Confusing, ain't it?
Click to expand...

Microsoft has stated (for WinXP) that what defines a "device" (in terms of a PC) is the motherboard. You can change out anything but the MB and use the same license. You can only change the motherboard and keep your OS license if it fails and you can no longer get an exact replacement. All indications seem to be that the same thing applies to Vista.

Now, in practice, MS often allows reactivation of OEM licenses on other systems if you call in. But their position is that they do not have to do this. In general, what MS is really concerned about is system builders/OEMs or big companies reselling old OEM licenses in bulk, or reusing them on hundreds or thousands of new systems to avoid having to buy new licenses.

For the record: IANAL, this issue has not gone to court (at least in the general case), and copyright law is very unclear on this sort of thing. Some people claim that you cannot be legally bound to such restrictions by a software EULA, but the issue has not been decided.
 
Originally posted by: Matthias99
Microsoft has stated (for WinXP) that what defines a "device" (in terms of a PC) is the motherboard.
Click to expand...
Well, that was MS's new definition starting about two years ago. Before that, it was pretty much undefined. But now, MS is concerned about virtual devices. Hence the mention of "A hardware partition is considered to be a separate device" in the new Vista EULA.

Things are NOT getting less confusing.
 
I have always used OEM. I have an OEM copy of Windows XP, and within the last year have replaced my motherboard twice (with 2 different ones), as well as a couple of other hardware upgrades. Every time I call them to get a new activation code, the only thing they can ask is

"How many computers is your copy of Windows installed on?"

Why is that all they can ask? Simply because MS knows that the whole 1 motherboard per license will never hold up. It is your copy of windows, and MS can only restrict it from being installed on 2 computers at once. MS can't prove that you aren't replacing your motherboard because the last one quit working and they know that.

There have never been any problems, in my experiences, with OEM Windows concerning the EULA, so do not think that you can't upgrade your motherboard if you purchase an OEM.

As for the price difference, I believe that OEM copies must be purchased with hardware.
 
Originally posted by: BlancoNino
Why is that all they can ask? Simply because MS knows that the whole 1 motherboard per license will never hold up. It is your copy of windows, and MS can only restrict it from being installed on 2 computers at once. MS can't prove that you aren't replacing your motherboard because the last one quit working and they know that.
Click to expand...
I agree with your logic. Microsoft HAS occasionally denied reactivation, but usually because people try to use the COA Key from a discarded brand-name PC on a new home-built PC. As long as it's a "Generic OEM" version, it seems that Microsoft has been letting MOST people re-Activate OEM XP on a new motherboard.

We'll see whether this practice continues with OEM Vista licenses. My guess is, it will.
 
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