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OEM partnerships

OEM partnerships

Noun

OEM partnerships are technology collaborations between businesses where one company (the original equipment manufacturer, or OEM partner) supplies a SaaS product that another company (the partner) incorporates into their own offerings. The partner may customize the OEM product to align with their brand and functionalities. This approach enables the partner to broaden their product portfolio without internal development, while the OEM gains a wider market reach through the partner's distribution channels. Both partners benefit from the integration as they tend to increase retention and decrease churn in customers.

Example:

The computer manufacturer signed several new OEM partnerships to integrate a leading graphics card company's technology into their laptops.

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