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Home > 2007 > May > 03

Readers contribute to the discount debate

By Scott Dunn

Following last week's story on OEM software, readers raised legitimate concerns about OEM discounts and some crippled academic software.

Other readers offered even more ways and places to get software with a whopping educational discount.

OEM discounts: too good to be true?

A handful of readers expressed concern about the information in my article on OEM discounts. Windows Secrets contributing editor Susan Bradley sent her own take on this line of thought:

  • "Over the last couple of newsletters, several ways to cheaply upgrade to Vista have been discussed. However, the best and cheapest way to 'upgrade' or 'buy' Vista is still the way my sister bought her Vista operating system. She bought it preinstalled on a computer, with the proper drivers already included.

    "OEM licenses aren't legal for the average computer user to purchase and use to install on existing computers. Most of us can't legally buy or install this software on our computer systems because we aren't system builders. OEM software by definition is 'original equipment manufacturer' software and is licensed to system builders to install and bundle on, typically, new systems.

    "You can read the EULA for the OEM software that I copied on my Web site. When you purchase OEM software, you are stating that you are a 'system builder' of computer devices, that is, you are a manufacturer of computer equipment. You also certify that you will provide all support for that system. And, you need to affix a Certificate of Authority to the system.

    "The bottom line is that unless your name is Michael Dell, chances are most of us aren't system builders. Therefore, it's not legal for us to buy OEM software and use that license to install it on our systems."
The purpose of my story was to report on the savings advertised by a number of online retailers (including reputable dealers like Amazon.com) via OEM or System Builder software. As Susan points out, however, some retailers may be violating Microsoft's OEM license when they fail to sell the product with a fully assembled computer system. Microsoft changed its OEM license in September 2005 to add this requirement, as described in a Microsoft blog post.

In addition, OEM versions of Microsoft software can only be sold by "authorized dealers", found on a Microsoft list (this link requires IE), to "system builders," who are required to register with the Microsoft Partner Program. This language leaves little room for a home user to take advantage of these discounts while still complying with the license agreement.

Let me be clear that I do not encourage anyone to break the law or behave unethically by violating software license agreements. My story reported the fact that a large number of online stores do sell OEM versions of software. These sales attract customers, some of whom may not understand the legal details or choose to ignore them.

Some academic software is different than retail

OEM discounts aren't the only complicated subject in the software marketplace. A reader named David points out that not all academic software is created equal:
  • "Student versions of software vary widely in their restrictions. Macromedia, for example, used to limit the size of projects in Director and put a 'bug' [logo] on the output to indicate it was produced by a student version so it couldn't be used for commercial projects.

    "Adobe, on the other hand, has been easier. I got my first copy of Photoshop as a 'student OEM' version with no handicaps and have not had any upgrade issues since. It was 25% of the cost of retail.

    "Other products may block professional output formats or limit the number of projects produced. So, do your research to see what your best value really is. Typically, upgrades are the same cost for everyone, so if offering a discounted version gets you started with them, vendors are happy to support it."
Because Adobe acquired Macromedia in 2005, I wouldn't expect to see these kinds of restrictions in Director anymore. But David's point is still an excellent one: do your research on a particular discounted product before you buy it.

An educational way to get software gratis

Other readers wrote in with more ways and places to get software discounts. Karl Poehleman clues us in to another educational discount option:
  • "Your discounted software finds are all very nice, but you left out an alternative — free! As in free Microsoft software from Microsoft Academic Alliance. All one needs to do is take a computer-related class at a local community college (or other qualified educational outlet), and then voilà — free software!

    "Sure, you can buy it discounted there as well, but I picked up copies of Vista Business, XP Pro, Access 2007, Visio Pro, and more for nada, zip, zero. The software itself needs to be downloaded, or in some cases checked out for copy (so you need to have a burner, or in the case of Vista, a DVD burner). This is a great option that deserves mention."
The program Karl identifies is formally known as the MSDN (Microsoft Developer Network) Academic Alliance. It makes software available to qualifying institutions and their faculty and students for instructional purposes or noncommercial research. The program's EULA specifically rules out commercial use. The license has some other quirks, such as requiring that operating systems obtained under this program be installed only on computers that do not have an OS at the time of installation.

Because of the emphasis on software development, the program does not include products such as Microsoft Office, but it does include some Microsoft operating systems, as Karl mentions. Some schools may not include the software with the enrollment fee, so check with your local educational institution about policies and pricing.

Find academic discounts in Australia, too

To help academic readers in Australia, reader Sam McCleary chimes in with some sites that offer educational discounts in the land down under:
  • "After reading your article on academic pricing, I thought I'd add my two-cents worth and tell you where to get discounted educational software in Australia. SI Group sells discounted Microsoft and Adobe software to students of an accredited academic institution."
Thanks for the tip, Sam!

Help people find this article on the Web (explain):

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