An Evaluation of Technology Acquisition via OEM Relationships

A summary of technology acquisition experiences based on OEM (original equipment manufacture) arrangements across various AT&T projects, is presented. These experiences show that OEM relationships that use off-the-shelf products often provide quickest market entry. On the other hand, OEM relationships that don't use off-the-shelf products characteristically require significant internal development staffing, equivalent or longer development schedules, and higher overall risks. The three key attributes of successful OEM relationships were observed to be: the existence of a long term strategic product plan; the productization of off-the-shelf OEM products; and contractual arrangements with vendors whose commitment to product support is large, linking the vendors success to that of the company (Principal) distributing the OEM product.