OEM - original equipment manufacturer
OEM (pronounced as separate letters) is short for original equipment manufacturer, which is a somewhat misleading term used to describe a company that has a special relationship with computer and IT producers. OEMs are typically manufacturers who resell another company's product under their own name and branding.
OEM is Similar to VAR
While an OEM is similar to a VAR (value-added reseller), it refers specifically to the act of a company branding a product to its own name and offering its own warranty, support and licensing of the product. The term is really a misnomer because OEMs are not the original manufacturers; they customize the original product.
An Example of OEM
When a computer technology producer manufacturers its product, for example, a computer graphics card, they will usually make two or more versions of the product. One version is distributed by the manufacturer direct to the consumer retail market, using its own branding and offering its own warranty and support.
Other versions of the manufactured product will be distributed through the manufacturer's OEM and authorized reseller distribution channels. Usually OEM products are the same quality as the retail versions, but warranties may be different, the manual and bundled software may be non-existent, and the cables and connectors required for installation might not be included. In some cases it may be large quantities of the product purchased in bulk by the OEM for mass-production of pre-built systems.
Recommended Reading: Learn more about different OEM Business Models in this Webopedia Quick Reference article.
IT Solutions Builder TOP IT RESOURCES TO MOVE YOUR BUSINESS FORWARD
Which topic are you interested in?
What is your company size?
What is your job title?
What is your job function?
Searching our resource database to find your matches...
Stay up to date on the latest developments in Internet terminology with a free newsletter from Webopedia. Join to subscribe now.
From A3 to ZZZ this guide lists 1,500 text message and online chat abbreviations to help you translate and understand today's texting lingo. Read More »List of Well-Known TCP Port Numbers
Port numbers 0 to 1024 are reserved for privileged services and designated as well-known ports. This list of port numbers are specified in... Read More »
Computer architecture provides an introduction to system design basics for most computer science students. Read More »Network Fundamentals Study Guide
Networking fundamentals teaches the building blocks of modern network design. Learn different types of networks, concepts, architecture and... Read More »The Five Generations of Computers
Learn about each of the five generations of computers and major technology developments that have led to the computing devices that we use... Read More »