OEM
OEM stands for Original Equipment Manufacturer, and typically OEM versions of windows are intended for people and businesses building machines.
The only differences are that they aren't don't have fancy packaging/manuals, just a cardboard disc envelope and serial number, and I believe they're more flexible for installing it onto a different machine.
EDIT - I looked into it, I'm half right. Windows 7 can only be installed on one motherboard, but you can upgrade all other components. 8 will install on any machine as long as it's only on one at any one time. Additionally, you don't get phone support, which isn't too big a deal for most people considering it, but worth a mention.
Correct, apart from they are actually less flexible when it comes to installing it on a different machine. OEM Windows keys link to the first motherboard they are used with and cannot be transferred without Microsofts help. I got Microsoft to transfer my OEM key to my new motherboard when I upgraded because I told their support that my old mobo died.
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