OEMs have a choice of two channels for buying Microsoft® operating systems:

The Embedded Channel, serving OEMs that build dedicated-purpose devices (e.g., a telephony server for VoIP applications).

The System Builder Channel, serving OEMs that build general-purpose devices (e.g., a general-purpose file or print server for internal use within an enterprise)

The Embedded Channel is the only Microsoft channel for buying certain products—Windows XP Embedded®, Windows CE®, Windows Embedded for Point of Service® (WEPOS), and MS-DOS®. Other operating system products can be purchased from either the Embedded Channel or the System Builder Channel. But, while products available from both channels are identical regardless of the channel through which you buy them, the licensing provisions and pricing are different.

Why Buy Through the Embedded Channel?
In general, if you qualify for purchasing through the Embedded Channel, you should do so, as it offers lower pricing, greater product availability, longer product support lifecycles, and lower operational costs in deploying solutions. Specifically, only the Embedded Channel can offer:

• Lowest pricing. Not only do embedded versions cost less (because of their restricted use), but they also don’t require any volume commitments—you just pay as you go.
• Longest product availability and support lifecycle. Products purchased through the Embedded Channel are available and supported for up to 15 years—significantly longer than those purchased through the System Builder Channel.
• No need for Windows Product Activation (WPA). If you qualify for Microsoft’s System Lock Pre-Installation (SLP) program, which requires purchasing certain minimum quantities, we’ll show you how to bypass WPA and save valuable time in the OS provisioning process.
• Single-image recovery media. If you purchase your operating system through the Embedded Channel, you can create a single recovery image containing not only the OS, but also all the applications and drivers.
• Third-party usage. When you buy through the Embedded Channel, you can use a contract manufacturer or systems integrator for OS integration services. You can even use Microsoft-approved third parties to buy embedded licenses on your behalf.
• Windows shell customization. Buying through the Embedded Channel gives you the ability to customize the Windows shell - for example, suppressing the Windows splash screens and booting right into the embedded application, so you can control the user experience.

Which Products Can Be Purchased Through the Embedded Channel?
The Embedded Channel isn’t just for purchasing traditional embedded products. If your product qualifies, you can also use this channel to purchase many of the popular “classic” operating systems—thereby gaining the extra benefits of the Embedded Channel for these products.

Products available through the Embedded Channel fall into three categories:
Desktop operating systems

• Windows XP Professional with Embedded Restrictions(32- and 64-bit versions)
• Windows 2000 with Embedded Restrictions
• Windows NT Embedded
• Windows 3.1 and 3.11
• MS-DOS 6.22

Server operating systems

• Windows Server™ 2003 R2 for Embedded Systems (32- and 64-bit versions)
• Windows Storage Server 2003 R2 for Embedded Systems (32- and 64-bit versions)
• Windows Server™ for Embedded Systems with the Server Appliance Software Version 3.0
• Windows Server 2003 for Telecommunications Systems with the Server Appliance Software Version 3.0
• Windows Server™ 2003 for Embedded Systems with Internet Security and Acceleration Server
• Data Protection Manager 2006 for Embedded Systems
• SQL Server™ 2005 for Embedded Systems
• Windows Server 2000 for Embedded Systems
  

Embedded operating systems

• Windows XP Embedded (XPe)
• Windows CE
• WEPOS
• MS-DOS