The difference between OEM and Retail licensing and which one is better for you

Windows 10 is the optimal choice for Windows users now, thanks to the ease of use and features it offers, as well as the full support from Microsoft, unlike Windows 7, which is no longer supported by Microsoft. When installing Windows 10 on your device, you will need to activate it to access all the features. Therefore, you must purchase a license from Microsoft for your Windows, but there are many types of licenses offered by Microsoft for Windows 10, controlled by different rules like OEM, Retail, Volume, and more. But what is the difference between these types and which one is best for you, this is what we will learn in this article.

OEM License stands for “Original Equipment Manufacturer” and it is the activation key used to license Windows copies obtained by computer manufacturers such as DELL, hp, ASUS, and others. Some companies or local stores can purchase OEM Windows copies and install them on certain devices. It’s important to note that you cannot use an OEM license to activate any other Windows. This type of licenses is designed to remain tied to one device at all times.

Retail License, also known as “Full Packaged Product,” is the license you get when purchasing a Windows copy from the Microsoft store or any other retailer. Unlike OEM license, the key for this license can be used to activate Windows on another device, but you must deactivate Windows on the old device. This means the license can be transferred and used to activate Windows on different devices, but you cannot activate two Windows copies on two different devices at the same time.

Volume License is designed for large scenarios like businesses, education, and government sectors. Large institutions and especially companies have a large number of devices, and each of them runs on the Windows operating system. Therefore, a Volume License allows institutions to use one key to activate all devices without the need for different keys for each device. Based on this, devices that are not part of the institution cannot be activated using Volume licenses.

MSDN, or Microsoft Developer Network, is a platform or service created by Microsoft specifically for developers. Subscribing to this service gives you access to many advanced features from Microsoft, including the ability to install and activate Windows copies through an MSDN license, and use these copies in designing, developing, testing, and showcasing programs as well. These Windows copies are designed for developers and cannot be used for commercial purposes.

After presenting different types of Windows 10 licenses, most users’ choices revolve around OEM or Retail licenses, as Volume licenses are tailored for large companies and MSDN licenses are for developers. Both types do not represent a large user base, so we will explain which of the two options is best for you by comparing them in many aspects.

For usage, there is no difference between a Windows version activated through an OEM license or a Windows version activated by a Retail license. Both are full versions and contain all the features and functions you would expect as a Windows 10 user. As for support, Windows Retail versions excel as Microsoft provides full support for these versions, while using a Windows OEM version, Microsoft’s technical support may direct you to contact the manufacturer’s technical support.

Whether you are using a Windows OEM version or a Windows Retail version, you can receive Windows updates and upgrade to Windows 10 as long as you have a valid Windows 10 license. As for replacing a hardware component in your device, you can do so freely if you have a Windows Retail version, unlike Windows OEM versions. You can replace any part of your device except the motherboard, as the System-Locked Pre-Installation (SLIC) code is stored in the BIOS of your device. Therefore, if the SLIC is missing, Windows will not activate.

If you are using a Windows Retail version, you can transfer the license to another device as long as you have deactivated Windows on the old device, as mentioned earlier. If you are using a Windows OEM version, you cannot transfer Windows to another device, as the transfer process has the same consequences as changing the motherboard of the device.

If you are curious to know the type of license you are using, you can easily find out by opening the Command Prompt or Power Shell, then type “Slmgr /dli” or “slmgr /dlv” and press Enter.

After a moment, a new window “Windows Script Manager” will appear showing the type of license installed on your Windows.

If you have a new device and want to activate the Windows installed on it using the activation key from the Retail license on the old device, you can do so with some simple steps. The first step is to deactivate the Retail license from the old device by right-clicking on the Start menu button or pressing Win+X on the keyboard, then run Command Prompt as Administrator by clicking on (Command Prompt (Admin) or (Power Shell (Admin)), then type the following command “slmgr /upk.” You will then see a message indicating successful deactivation.

Now, after installing Windows on the new device, run Command Prompt as Administrator as we did before and type the following command: “slmgr /ipk xxxxx- xxxxx- xxxxx- xxxxx- xxxxx”. Note that “xxxxx- xxxxx- xxxxx- xxxxx- xxxxx” represents your product key, then press Enter to activate Windows on the new device.

After that, type the command mentioned earlier “slmgr /dlv” to verify Windows activation.

Read Also: What Is the Difference Between All Versions and Editions of Windows?

If the status is licensed, this means that your Windows has been successfully activated with the same license, and now you can enjoy all the features offered by Windows 10 without any issues.