Save money with OEM software

Windows Secrets Newsletter • Issue 105 • 2007-04-26 • Circulation: over 400,000

Table of contents

Top Story: Save money using OEM software
Known Issues: More on getting your educational discount
Wacky Web Week: The great musical keyboard prank
Woody's Windows: Vista Timesaver #6 — how to preview promptly
PC Tune-Up: With Internet safety, be prepared, not paranoid
Perimeter Scan: Don’t ignore QuickTime zero-day threat

Top Story

Save money using OEM software

By Scott Dunn

In last week’s issue, I told you how to get great prices on Windows and other software using educational discounts. Unfortunately, not everyone has the credentials to get these discounts.

For those lacking the academic qualifications, Original Equipment Manufacturer (OEM) discounts offer a tempting alternative.

Who can buy OEM software?

In theory, software sold at OEM discounts is intended for the makers of computers to install on their systems before selling the systems to the public. In practice, however, anyone can purchase OEM software. But because of its purpose, the package usually assumes a level of expertise higher than the average software buyer, omitting, for example, instructional manuals and technical support options. I’ll tell you more about that later.

One advantage of OEM products over academically discounted software is that more programs are available in OEM versions. For example, if you’re shopping for a copy of Windows Vista, only the Home Premium Upgrade version is available for academic discounts. But, you can get OEM discounts on nearly every edition of Vista that Microsoft makes. (Note that OEM discounts of upgrade versions are rare, since OEM products are typically intended for new computers.)

In addition, educational discounts are usually limited to a single copy. But you can buy many copies of OEM-discounted products, some of which come in multi-packs that let you save a few dollars more.

Big savings in the U.S. and U.K.

OEM versions of Windows offer substantial savings over the equivalent retail versions. My survey of prices of several online stores in the U.S. showed savings up to 47 percent. (Amounts are averages.)

	OEM	Full version	Savings
Vista Ultimate	$202.48	$376.12	46%
Vista Business	$155.89	$291.98	47%
Vista Home Premium	$121.26	$230.69	47%
XP Pro SP2	$151.07	$275.21	45%

My survey of online stores in the U.S. showed OEM prices even beat out those of upgrade versions by more than 20%. (Amounts are averages.)

	OEM	Upgrade version	Savings
Vista Ultimate	$202.48	$256.06	21%
Vista Business	$155.89	$196.95	21%
Vista Home Premium	$121.26	$157.87	23%
XP Pro SP2	$151.07	$205.60	27%

Of course, nobody actually pays an “average” price. To get you started, here are the lowest prices I found as of April 24, 2007 (with links to the online sources I found):

	OEM price (U.S. $)	OEM price (U.K. £ incl. VAT)
Vista Ultimate	$189.99	£116.05
Vista Business	$127.00	£86.74
Vista Home Premium	$119.99	£67.79
XP Pro SP2	$126.95	£64.99

OEM software isn’t without risks and limitations

Products intended to be pre-installed on machines for other customers omit some of the goodies normally included with full versions and have some licensing restrictions as well. For example, OEM software lacks the usual packaging and instructional manuals. But since third-party books on Windows abound, this shouldn’t be seen as a hurdle.

In addition, OEM software usually doesn’t offer any free options for technical support from the software publisher. If you have a problem, you may be able to use paid support or consult one of the many third-party technical support Web sites. Some, such as Experts Exchange, will cost you ($13 a month, or $100 a year). But several of these are free, including the following examples:

• Google Groups
• Suggest a Fix
• Tech Support Forum
• Tech Support Guy

OEM versions of Windows cannot be used to upgrade an existing system. The only option available is a clean install, which, according to one dealer (Tiger Direct), will delete your existing data. For a trouble-free experience, most PC gurus recommend a clean install of new instances of Windows anyway. So the lack of an upgrade option is not necessarily a problem.

The OEM discount also comes with some extra licensing restrictions. In particular, you’re limited to installing the product to a single machine — the license cannot be transferred to another machine. Although it’s normal for Windows to be limited to a single machine at a time, the EULA for retail versions usually permits Windows to be removed from one computer and transferred to another. (See section 14 of this typical Microsoft EULA for XP.)

In many cases, OEM software also comes with a no-refund, no-return policy, even if the package has not been opened. So, make sure you specify the right product at the time you place your order.

Still more ways to save big

OEM and academic discounts are not the only way to trim your software budget. For example, cheaper even than an OEM version is a “work at home” package of Windows XP Pro SP2 available in the U.S. for $105 from Von1. According to Christina Philpot, manager of operations at Von1, the lower price represents a promotion to home and student users — the product is not to be used for businesses.

Reader Chris Miller points out that Microsoft offers a similar deal for Office Home and Student 2007, which includes Word, Excel, PowerPoint, and OneNote. Like the “work at home” XP product, Office Home and Student is for noncommercial home (not business) use. Despite the name, you do not need to have a student in your home to buy this product, according to a Microsoft FAQ. (See question 13.) Microsoft’s suggested retail price in the U.S. is $149.

Last, and most certainly least expensive, here’s a tip from reader Linda Jones. She points out that TechSoup, which coordinates donation programs by software vendors, lets qualified nonprofit organizations purchase software for a substantial discount. For example, U.S. libraries, 501(c)(3) nonprofit organizations, Canadian charitable organizations, and Canadian nonprofits can purchase Windows XP Professional Upgrade with Service Pack 2 for as little as $8. That’s hard to beat.

Scott Dunn is associate editor of the Windows Secrets Newsletter. He is also a contributing editor of PC World Magazine, where he has written a monthly column since 1992, and co-author of 101 Windows Tips & Tricks (Peachpit) with Jesse Berst and Charles Bermant.

Known Issues

More on getting your educational discount

By Scott Dunn

Reader responses poured in after last week’s article about the steep academic discounts available for Windows and other software.

Some readers felt that we took a U.S.-centric view. It’s true — educational pricing isn’t limited to the United States. This week, I’ll also tell you where to find some of these deals in the U.K.

Academic pricing outside the U.S.

Reader Jim Irving writes:

“As you have readers from many other countries, this article would be improved by making it clear that its contents only related to persons resident in the USA. This may be something that is taken for granted, but it would acknowledge the worldwide extent of your readership."

Good point! Academic discounts are harder to find in Canada and the United Kingdom. But, since the discounts originate with the manufacturer rather than the retailer, it’s sometimes possible to find these discounts in countries other than the U.S. For example, a search for the keywords Windows and academic at DealTime U.K. turns up a number of sites selling Vista Home Premium and XP Home Upgrade at prices in this range:

• Windows XP Professional Upgrade: £57.07 with VAT — compared to £151.58 without academic pricing. (Prices from GenStar U.K..)

• Windows Vista Home Premium Upgrade: £53.33 with VAT — compared to £130.77 without academic pricing. (Prices from Pyramid Distribution Ltd.)

Other sites that sell the academic upgrade version of Vista Home Premium in the U.K. include Microwarehouse U.K. and Ebuyer.com. Curiously, none of these sites mention requiring any academic qualifications (although I didn’t actually complete a purchase, so some such requirement may arise at the end of the process). Thanks to reader Terry Bernstein for helping us locate these resellers.

Other issues with educational discounts

Naturally, you don’t need to rely on online stores exclusively for academically discounted software. As reader Jim Phelps points out, many school bookstores sell these products at even better prices.

Reader David Dows, however, highlights a potential drawback of educational pricing:

“This article failed to mention that academic versions often are not eligible for upgrade pricing to the next release. Academic versions offer a one-time, single-version discount. If the buyer won’t be able to qualify for the academic discount on future releases, it may not be cheaper in the long run.”

Furthermore, as Tim Wagner points out, the licenses for software programs purchased through academic discount programs typically state a restriction to non-commercial uses only.

Finally, a reader named Neal has this complaint:

“As a legitimate educational (university) user, I’ve found that when word of how to get education pricing, especially when it stretches the original basis, gets circulated to a wider general public, many manufacturers limit or stop offering these discounts, causing bona fide educators to lose them. I’m all for getting software at the lowest price, but not at the cost of causing the hen that lays the golden egg to stop laying.”

I’ve been buying software for a long time and haven’t noticed the problem that Neal reports. But, since the wider general public includes many people with legitimate connections to education (parents, staff, and so forth), there doesn’t seem to be any reason to withhold information about these programs. I suspect that companies choosing to make educational discounts available are more concerned about enforcing their sales policies regarding academic credentials than keeping the entire program a secret.

Wacky Web Week

The great musical keyboard prank

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WACKY WEB WEEK

The great musical keyboard prank

Office pranks — not to mention hardware sabotage — are liable to get you fired from many companies. But, that didn’t deter the folks at Metacafe from showing how to hijack a keyboard to make the Caps Lock key play a goofy sound.

The gimmick involves finding a high-tech greeting card, the kind with hardware built in to play music or sound effects. You’ll also need an NPN switching transistor from your local electronics store and a few tools to disassemble and reassemble the keyboard. Got all that? You can try this at home, but you may find it safer just to watch the video explaining how it all works. More info

Woody's Windows

Vista Timesaver #6 — how to preview promptly

By Woody Leonhard

One of Vista’s best new timesavers sits hidden in an obscure Windows Explorer menu.

You can make the new Windows Explorer show you high-quality previews of files and PDFs before you open them — if you know the secret.

In praise of previews vs. opens

If you’ve used any flavor of Microsoft Office since Office 97, you know how handy previews can be. To get them, select File, Open (in Word 97, 2000, or 2003, for example), then click the Views icon up at the top right and pick Preview. Click once on a Word doc. Word presents you with a passably accurate preview of the document before you open it. It’ll even take a fair stab at HTML files, RTF (Rich Text Format) files, and the first page of PowerPoint presentations.

Being able to take a peek at a doc before you open it saves lots of time. There’s a noticeable stutter as you scroll through a list of documents, slapping previews on the screen. But previewing whooshes by a whole lot faster than having to open each file.

Since the files are previewed and not opened, there’s very little chance of getting stung by an infected macro in an unfamiliar document. And, you don’t have to make any decisions about running macros or responding to antivirus reports as you mindlessly push the down arrow in pursuit of the file that fits.

Fast. Simple. Safe. What a concept.

How to turn on Vista previews

While Office has shown previews for a decade, Windows itself has never offered previews — at least, nothing beyond a limited icon-like look at the contents of a file. Until Vista came along, if you wanted to look at a file, you really had to open it — the Pandora’s Box approach.

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PC Tune-Up

With Internet safety, be prepared, not paranoid

By Mark Joseph Edwards

Some parts of the Internet are incredibly dangerous, but there’s help along the way to protect you.

This week, I’ll tell you about a half-dozen excellent free security tools that help defend you against phishing scams, spyware, adware, and dangerous programs.

OpenDNS: free antiphishing for your network

A reader wrote to me recently about the nagging problem of managing phishing protection on several computers. The main problem was the issue of having to install and update the toolbars on the different desktops, which, of course, can take a lot of time.

A while ago, I learned about a good solution to this problem that offers antiphishing protection using DNS (Domain Name Service) instead of toolbars or custom desktop security applications. The solution, called OpenDNS, is freely available to anyone who wants to use it.

In order to understand how OpenDNS works, you first need to understand how DNS works. DNS is like a phone book for the Internet, mapping domain names to IP addresses. This means that when you type WindowsSecrets.com into your Web browser, for example, your operating system queries the DNS servers configured in your network settings. The DNS servers look up the IP address that matches the domain name and return that IP address to your browser. The same flow happens with any Internet-enabled application that needs to locate a system on the Internet, including e-mail, FTP, instant messaging clients, etc.

OpenDNS takes a unique approach to DNS queries by expanding the functionality of DNS itself. OpenDNS not only serves as a “phonebook” for the Internet, but also keeps track of known phishing sites. Thus, when you attempt to connect to such a site, OpenDNS will intercept the connection and prevent you from landing there, which in turn protects you by keeping you away from such sites.

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Perimeter Scan

Don’t ignore QuickTime zero-day threat

By Ryan Russell

QuickTime and iTunes are third-party applications that most Windows users have installed, and it’s critical that you keep them updated.

QuickTime, especially, is an active hacker target, and you must keep up to date with patches to protect yourself.

Make sure QuickTime updates work

I’m stepping a little bit into contributing editor Susan Bradley’s territory here. She recommended in her Mar. 22 column that you update to QuickTime 7.1.5.

The list of fixes in 7.1.5 is extensive. It includes nine bugs that could give control of your PC to an attacker if you merely play a QuickTime file. I hope I don’t still have to convince anyone that upgrading is a good idea.

But I don’t want to focus on that month-old QuickTime update in particular. What I have to tell you is yet another tale of a security update that didn’t want to install.

My main computer died a few weeks ago, and when I finally got a replacement power supply, I had some patches to catch up on. It took me about five hours to get the QuickTime/iTunes upgrade to install.

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