What does "oem" exactly mean when it comes to win7?

[ricleo2]

I was shopping around for win7 when I noticed the oem version is cheaper. The explanation on the vender's website is not clear to me. Why is it cheaper and am I better off buying the more expensive version? Thanks.

 

[ZippyDan]

Physical Difference:

OEM will come with only one disc containing only one bit version (32-bit or 64-bit) of the version you buy (Home, Professional, Ultimate). This is why when you buy OEM it will specify 32-bit or 64-bit. It is possible, but unconfirmed, that the key provided will work for both bit versions, but they don't provide you the media for both.

Retail will come with two discs containing both bit versions (32-bit and 64-bit) of the version you buy (Home, Professional, Ultimate). This is why the Retail version does not specify bit version.

Licensing Differences:

By terms of the license, you are only allowed to install an OEM copy of Windows on a "new" computer. There is a Theseus Ship quality to this term, as it is debatable whether a significant upgrade to an old computer can qualify it as a "new" build. This is why in ancient times, you were required to purchase at least one piece of hardware with an OEM copy of software (under the assumption that you would install that hardware with the software, creating a "new" build). OEM stands for Original Equipment Manufacturer and is supposed to be marketed toward persons and companies that "manufacture" or assemble computers for RESALE. That doesn't mean you are outside of the license if you are "manufacturing" the computer for yourself, you are just not the focus. The focus is manufacturers.

A VERY important difference in the OEM license is that it is not TRANSFERABLE. Once an OEM license is used on a "new" build, you cannot use it on another computer, EVEN if the other computer is also a "new" build, and even if you remove the original computer from use. What that means is that once that old computer is taken out of service, the license is lost. Again, there is a nebulous nature to this: if I gut a computer so that only the case remains (with the OEM license sticker) and replace all the internals with brand new parts, is it still the same computer and therefore within the license?

This is why there are no OEM upgrade licenses, because OEM copies are for "new" installs only, and "upgrade" by its nature implies a preexisting (older) install. Therefore, you cannot use an OEM license to upgrade an existing install (this again is difficult to define: if I take a hard drive out of a computer that already has an OS installed, and I put it into a another computer where every other part is brand new, am I doing an upgrade or a brand new install?)

Retail copies, on the other hand, have none of these license restrictions. You can install the software on any computer, new or old. You are still limited to one license per machine, but as long as you retire the license from use on the previous machine, you can reuse it on a different machine. Retail Upgrade licenses follow the same rules except that they require a valid existing prerequisite license.

In practice, all of the licensing issues are (not) enforced by the honor system. The OEM version of Windows 7 Ultimate 64bit is identical to the Retail version of Windows 7 Ultimate 64bit (both Full and Upgrade). Microsoft has no way to check and make sure you are using the OEM copy on a "new" install (and if they wanted to, it would be difficult to define "new" fairly) and to make sure you are not transferring it to a different system (again, there would be no fair way to do this when considering upgrades). Similarly, they also do not check to see if your Retail Upgrade copy is actually attached to a valid prerequisite license.

 

[ricleo2]

Physical Difference:

OEM will come with only one disc containing only one bit version (32-bit or 64-bit) of the version you buy (Home, Professional, Ultimate). This is why when you buy OEM it will specify 32-bit or 64-bit. It is possible, but unconfirmed, that the key provided will work for both bit versions, but they don't provide you the media for both.

Retail will come with two discs containing both bit versions (32-bit and 64-bit) of the version you buy (Home, Professional, Ultimate). This is why the Retail version does not specify bit version.

Licensing Differences:

By terms of the license, you are only allowed to install an OEM copy of Windows on a "new" computer. There is a Theseus Ship quality to this term, as it is debatable whether a significant upgrade to an old computer can qualify it as a "new" build. This is why in ancient times, you were required to purchase at least one piece of hardware with an OEM copy of software (under the assumption that you would install that hardware with the software, creating a "new" build). OEM stands for Original Equipment Manufacturer and is supposed to be marketed toward persons and companies that "manufacture" or assemble computers for RESALE. That doesn't mean you are outside of the license if you are "manufacturing" the computer for yourself, you are just not the focus. The focus is manufacturers.

A VERY important difference in the OEM license is that it is not TRANSFERABLE. Once an OEM license is used on a "new" build, you cannot use it on another computer, EVEN if the other computer is also a "new" build, and even if you remove the original computer from use. What that means is that once that old computer is taken out of service, the license is lost. Again, there is a nebulous nature to this: if I gut a computer so that only the case remains (with the OEM license sticker) and replace all the internals with brand new parts, is it still the same computer and therefore within the license?

This is why there are no OEM upgrade licenses, because OEM copies are for "new" installs only, and "upgrade" by its nature implies a preexisting (older) install.

Retail copies, on the other hand, have none of these license restrictions. You can install the software on any computer, new or old. You are still limited to one license per machine, but as long as you retire the license from use on the previous machine, you can reuse it on a different machine. Retail Upgrade licenses follow the same rules except that they require a valid existing prequisite license.

In practice, all of the licensing issues are (not) enforced by the honor system. The OEM version of Windows 7 Ultimate 64bit is identical to the Retail version of Windows 7 Ultimate 64bit (both Full and Upgrade). Microsoft has no way to check and make sure you are using the OEM copy on a "new" install (and if they wanted to, it would be difficult to define "new" fairly) and to make sure you are not transferring it to a different system (again, there would be no fair way to do this when considering upgrades). Similarly, they also do not check to see if your Retail Upgrade copy is actually attached to a valid prerequisite license.

Thanks for the reply. I sometimes like to reinstall the os when my computer starts to do "weird stuff". Will an oem version let me do this? In other words, can I reinstall the oem several times like I have been doing with xp?

 

[Nothinman]

Thanks for the reply. I sometimes like to reinstall the os when my computer starts to do "weird stuff". Will an oem version let me do this? In other words, can I reinstall the oem several times like I have been doing with xp?

Sure, you just can't transfer the license to another machine. And it would be better to setup yourself up with a base image once you have the system working and restore from that rather than building everything from scratch over and over again.

 

[ricleo2]

Sure, you just can't transfer the license to another machine. And it would be better to setup yourself up with a base image once you have the system working and restore from that rather than building everything from scratch over and over again.

Excuse my ignorance, but how do you create a base image and how do you restore from it?

 

[Zedtom]

I received a Windows 7 Ultimate DVD at the New Efficiency Launch last fall. Is it OEM or retail?

 

[Nothinman]

Excuse my ignorance, but how do you create a base image and how do you restore from it?

With a 3rd party imaging tool like those from Acronis.

I received a Windows 7 Ultimate DVD at the New Efficiency Launch last fall. Is it OEM or retail?

It's probably a special, NFR copy.

 

[ZippyDan]

Thanks for the reply. I sometimes like to reinstall the os when my computer starts to do "weird stuff". Will an oem version let me do this? In other words, can I reinstall the oem several times like I have been doing with xp?

I may have overused the word "install", think of a license as the right to "use" the software on a particular device. Once you have "assigned" a license to a particular device (by installing for the first time), then you have the right to use the software on that device in perpetuity (with Retail and OEM licenses). So yes, you can reinstall the software TO THE SAME DEVICE as many times as you want with OEM or Retail. However, if you bought or built a different device, you would not be able to use (on your honor: you actually WOULD be able to use) the OEM copy on that device. You could use the Retail copy on a different device, PROVIDED YOU STOPPED USING IT ON THE PREVIOUS DEVICE.

 

[ricleo2]

I finally understand. Thanks to all that replied.

 

[Spicedaddy]

Thanks for the reply. I sometimes like to reinstall the os when my computer starts to do "weird stuff". Will an oem version let me do this? In other words, can I reinstall the oem several times like I have been doing with xp?

Yes, OEM will activate by Internet the first time, and you'll most likely have to activate by phone afterwards.

 

[BTRY B 529th FA BN]

After 3 or 4 times with a FULL RETAIL version of Vista 64 U, which I traded for, I had to start calling in to activate the copy. Now, all I'll buy is OEM

 

[Nothinman]

After 3 or 4 times with a FULL RETAIL version of Vista 64 U, which I traded for, I had to start calling in to activate the copy. Now, all I'll buy is OEM

I don't see the correlation. After enough installations you'll have to call to activate either copy.

 

[BTRY B 529th FA BN]

I don't see the correlation. After enough installations you'll have to call to activate either copy.

It was from my understanding that you had to do this every-time with OEM versions. Even installing on the same system.

From my personal experience, after the three or four installs, no matter what system you go to install on; or what version you have bought OEM or Retail, you have to call it in.

 

[Nothinman]

It was from my understanding that you had to do this every-time with OEM versions. Even installing on the same system.

From my personal experience, after the three or four installs, no matter what system you go to install on; or what version you have bought OEM or Retail, you have to call it in.

Even if it does, so what? Fix whatever you're doing that's caused you to reinstall that many times.

 

[BTRY B 529th FA BN]

Even if it does, so what? Fix whatever you're doing that's caused you to reinstall that many times.

And why would I pay more for a retail version than OEM?

 

[Nothinman]

And why would I pay more for a retail version than OEM?

To be able to get the disc replaced if something happens to it like the OP, for one. But that's your call, for something that you buy once and use for like 5yrs I don't really see why people make such a big deal about the cost of a Windows license.

 

[BTRY B 529th FA BN]

To be able to get the disc replaced if something happens to it like the OP, for one. But that's your call, for something that you buy once and use for like 5yrs I don't really see why people make such a big deal about the cost of a Windows license.

You can't get a replacement if you loose your OEM version?

 

[Nothinman]

You can't get a replacement if you loose your OEM version?

I've never tried but I would lean towards no if I had to guess. Buying an OEM disc makes you the OEM for yourself and thus whom you need to contact for support. I doubt MS will want to help you unless you're a registered system builder with them.

 

[Ken g6]

I thought OEM versions of Windows were associated with a particular motherboard. Is that not true (anymore)?

 

[BTRY B 529th FA BN]

I thought OEM versions of Windows were associated with a particular motherboard. Is that not true (anymore)?

They are, and when you swap to a different motherboard, you have to call it in; just as you would after a 3rd or 4th install with a retail copy = you have to call in to activate.

 

[Nothinman]

I thought OEM versions of Windows were associated with a particular motherboard. Is that not true (anymore)?

It still is, it's just that MS never really enforced that part of the license so people get away with it.