“Original Equipment Manufacturer,” what most of us know as OEM, is a term used in many industries. Particularly when talking about an intangible product like software, OEM products can vary. The software manufacturer will sell its partners a licensing term agreement, and the partners can rebrand the software, make minor adjustments, and sell it as their own. OEM provides a sense of ownership for partners because it removes all provider branding and allows for customizable opportunities.
While OEM solutions have been around for a while, they have started to take a back seat to another branding option known as White Label. What many are unaware of is White Label also strips manufacturer branding and allows users to customize the products! With White Label, the product is fully developed and supported by the manufacturer, enabling users to market immediately. Ongoing technical support and upgrades will be seamless for the user, and the solution will be free of any branding so they can sell it as their own product.
A significant benefit of White Label is the security it offers resellers with the app stores. Apple and Google Play have many limitations and rules on what apps are allowed on their platform. If the store finds there are two of the same apps, they might remove both of them! 😲 Or even all of their customers. (Additional information can be observed here and here (Clause 8.3).
The solution to this problem is for the app to be distributed through the software publisher’s stores. For example, Bicom Systems is the software publisher and has the credentials to post on the Apple and Google Play stores. Bicom Systems will then publish their Partners White Label solutions to ensure neither app is removed or banned.
On top of that the protection for distribution, White Label partners receive a:
- Generic App Icon and Name (Removed Branding Associated with the Publisher)
- Custom Company Name
- Custom Company Logo
- Custom Brand/Documentation Links
- Ready Documentation/Marketing Materials
- Communicator Branding with Support for Co-branding on per PBXware or Tenant Basis
White Label options are more common within the industry because it is merely a more accessible option. Selling White Label solutions has many benefits!
Your product is backed by someone else, for starters, allowing you to learn on the go as your business grows. If something goes wrong, a highly functional team is ready to fix it and educate you on future matters. The publisher takes care of the upgrades so you can focus on selling! Updates will include bug fixes and improvements to keep up with new technology and trends in the industry.
OEM, on the other hand, is a little less handy. A few things to keep in mind about OEM is:
- There is a risk of the OEM application being identified as a clone and removed from the Apple or Play store.
- The initial onboarding is complicated and has associated start-up costs.
- The complexity of the release and deployment process may delay the distribution of bug fixes, improvements, and new features, followed by the product’s unique delivery. The quantity of development, documentation and project staff needed explodes. Which ultimately will impact customer service.
- Users must have their own IT department to handle support from customers.
- Users must be educated and highly knowledgeable about the product itself.
If you would like to learn more about the benefits of selling White Label, take a look at this blog post. Are you interested in doing more research on Bicom Systems? Check out our gloCOM brand’s page here.
Updated January 5, 2021: