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Windows Vista - OEM Vs Retail Licensing Part 1

The first things to note is that there is a difference between what you can do legally under the license agreements and what you can physically do.
The analogy I like to give is having a Driving License.
Legally I cannot drive without one, physically there is nothing to stop me – it is however against the law.
The second thing to note is that this is very much a “basics” of how OEM & Retail OS licenses work.
The EULA is a lot more complicated and does explain everything in great detail. You really should make sure you read it through at some point so you know what you are agreeing to.

Buying

Retail
Anyone is of course able to buy a Retail version of the Operating System.
Numerous places online will sell you this version; it is also the version you are most likely to encounter in many of the High Street stores.
It is in a full retail plastic box.
With the exception of the Ultimate edition you will receive only the 32bit version of the operating system inside the box.
Where a 64bit version is available you will need to send off for the media, this has an additional administration fee of around £7 and will take 1-2 weeks to process.
With the retail version of Vista Ultimate you will receive both 32bit & 64bit media inside the box.

OEM
As with the retail version anyone can buy this version of the Operating System.
Most large High Street stores will not be dealing with OEM versions and if you wish to buy this over the counter you may well be restricted to independent and local stores.
Many online retailers will be happy to sell you an OEM version.
The OEM version ships wrapped in cellophane and comes with a basic manual and also a “Certificate of Authenticity” for you to attach to the machine on which the OS is to be installed.
You will buy either the 32bit or the 64bit version of the OEM software.
There is no option to replace the 32bit version with the 64bit version – so make sure you make the correct choice before purchase.
Finally there is no longer a requirement for the OEM version of the OS to be purchased with hardware.
With older OS’s this was a way some retailers would get around a licensing restriction that stopped them selling OEM versions.
However Microsoft dropped this restriction with Windows XP and the OS can now be legally purchased on its own.

Full Retail Vs Upgrade Retail
The full version of the OS is designed to be installed on a brand new machine without any other existing OS installed.
It is a brand new license, is not dependant on you owning a license for anything else.
The upgrade license is designed as a lower-cost way to upgrade from a previous version of Windows to the latest.
With MS Vista for example you can upgrade from Windows 2000 or Windows XP to Windows Vista – however not from earlier versions.
Once you upgrade you are “upgrading your license” so your old license for your old OS is no longer valid as a separate entity – it has simply been replaced with a license to use the newer OS.
In real terms this means for example that should you upgrade from Windows XP to Windows Vista your old Windows XP license ceases to exist once you’ve done the upgrade, you cannot use the Windows XP license on another PC as it forms part of your new Windows Vista license.

It should be noted that whereas with the Windows XP upgrade package you did not have to have the old OS you were upgrading from installed on your machine (simply pointing the installer at a copy of the media sufficed) this is no longer the case with Vista.
If you wish to purchase and use a Windows Vista Retail Upgrade your machine needs to already have Windows 2000 or newer installed on the machine for the upgrade to work correctly.
If the OS you are upgrading from is reasonably up to date (Windows XP) then an “In-Place Upgrade” will take place.
If your OS is older (Windows 2000) then the new OS will be installed as Clean and totally remove your old OS before installation.
The matrix here explains this process better.

Guide Parts 1, 2, 3, 4

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