How much should you pay for Windows Vista?
In addition to having a complex array of versions, Vista also has confusing pricing. I have given a table of prices at this link but I want to enlarge on the category with the lowest prices. It is called Original Equipment Manufacturer (OEM) or System Builder software. These prices are around half of what a full boxed version costs.
Why the price difference? It has to do with Microsoft’s marketing and licensing methods. The full version can only be used on one machine at a time but can be transferred from one machine to another if the prior installation is removed. Microsoft has been fuzzy about how many times a system could be changed and at first tried to limit it. Ed Bott chronicled the story of how public uproar forced Microsoft to soften their original policy. The full version also comes with Microsoft support. In other words, if you have trouble installing Vista, you can call Microsoft and hope for some help.
In contrast, the OEM version comes with no Microsoft support. The company saves money that way and that helps to lower the original price of the software. Another limitation on the OEM version is that it is tied to one system. It cannot be used on any other system except the original installation. Also it cannot be used to upgrade a system but must be clean-installed. Many people have been confused about who is eligible for an OEM version. Actually, anybody is. The version is available at numerous vendors. In fact, if you see a low price advertised for Vista, it is almost certain to be an OEM version. A good discussion of all the aspects of the OEM version is given by Scott Dunn at this link and also here.
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