What Does OEM Mean?

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OEM, or original equipment manufacturer, is a term heard most often within two industries: automotive and IT. Initially, it was associated with a company that manufactured a product which was then resold or rebranded by another company. However, the meaning of this term has evolved over time, and today it refers to different things. For instance, OEM can reference a company that manufactures the actual components used by another company to build a whole system. In other instances, the OEM is a company that rebrands another company’s products and sells them to end users.

OEM is also associated with the software industry. When PCmanufacturing companies such as Dell and HP build a PC, they provide the operating system to the end user. This OS is not developed by the hardware company but is actually a product of another company, Microsoft. In this case, Microsoft is called the OEM, while the PC is sold as a Dell or HP.

How is an OEM product built, partnered, and resold?

Before delivering a solution to end users, companies figure out the best way to serve customers’ needs. They evaluate several options such as whether to buy, manufacture, build, or partner with someone to design the solution. By partnering with OEMs, an organization can minimize the investment in manufacturing and reduce production and material costs while gaining expertise in product design. A shorter product life cycle is another important reason to partner with an OEM. While concentrating on their core competency, organizations can still build products using best-of-breed components. 

OEMs do nothing extra to the product, and some only brand a product with their logo. Other OEMs only supply components and do not sell anything under their brand. However, many companies do both. You can purchase these products from the company directly as well. 

Why are OEM products cheaper?

Products from an OEM are normally cheaper thanks to economies of scale. As the company partners with others to manufacture goods in large numbers, both the price and production time are significantly reduced. However, you need to verify what youre getting when you purchase a product from an OEM. While the products are cheaper and deliver the same features and performance, you may not receive some of the “extras” like tech support, which would normally be handled by a PC company. 

Is Parallels RAS an OEM product?

Parallels® Remote Application Server (RAS) is an OEM product created and distributed by the same company. It is a cost-effective, all-in-one application delivery and virtual desktop infrastructure (VDI) solution. It allows employees to access and use applications, desktops, and data from any device. Easy to deploy, configure, and maintain, Parallels RAS provides organizations with a seamless application delivery and VDI experience while reducing total cost of ownership (TCO) and improving security. Using SPLA licensing, Parallels RAS provides a pay-as-you-go experience by making use of concurrent connections to provide a total bill. 


Definition of OEM | pcmag.com

Original equipment manufacturer | en.wikipedia.org

What Are OEM Products & Why Are They Cheaper? [MakeUseOf Explains] | makeuseof.com

original equipment manufacturer | webopedia.com

Partnerships Are a Key Ingredient in the iPhone’s Success. What About for Your Medical Device? | mddionline.com

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