What is OEM Software?

OEM (Original Equipment Manufacturer) software refers to applications that have been sold to hardware and software manufacturers wholesale for the purpose of bundling with existing offerings.

The concept has become relevant in software thanks to the emergence of Software-as-a-Service (SaaS) and the model’s modularity

OEM Software provides users with a broader array of necessary tools, simplifying the purchasing process and centralizing functions. One common use in SaaS is the inclusion of embedded analytics and business intelligence tools in applications such as CRM or ERP suites.

OEM also lets companies create tools that are useful in highly unique or specialized sectors without resorting to costly and lengthy development cycles. OEM Software gives SaaS companies built-in scalable solutions that reduce future costs and create better synergy with existing infrastructure.

Embedded analytics guide

Increasingly, OEM software is bundled in with SaaS tools as either modules or built-in functionality.

OEM applications do come with some concerns about risks—many OEM tools are made by third parties—as well as licensing issues, though that has not inhibited their popularity. Finally, as a type of SaaS itself, OEM Software brings the advantages of the cloud to analytics, combining lightweight, efficient software with affordability to generate impressive ROIs.

How Can I Use OEM Software?

One common integration of OEM software into existing business suites is embedded analytics. As businesses become increasingly data-driven, the need for effective and integrated analytics are becoming paramount.

Instead of spending thousands on a separate business intelligence platform, many companies prefer to bundle their existing needs into a single tool.

This both reduces costs and ensures that vital applications will function harmoniously. It also reduces the need for specialized team members to manage different tools.

See it in action:

Retail Distribution Management Dashboard

The actual client journey through the platform is becoming more and more critical to SaaS companies, and the ability to map, navigate, and improve on these journeys is consequently becoming increasingly important.

Embedded analytics can detect important trends in SaaS standout features, such as trial signups or subscription cancellations.

In both cases, the OEM Software’s prescriptive analytics can make suggestions based on data that reverberate down the sales funnel, from the UX/UI feature design to how these options are marketed, to creating different sales approaches based on different customer archetypes and crafting valuable customer support content.

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