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Retail software: This type of software is sold off the shelves of retail stores. It includes expensive packaging designed to catch the eye of shoppers and, as such, is generally more expensive. An advantage of retail software is that it comes with printed manuals and installation instructions, missing in hard-copy form from virtually every other category of software. However, when hard-copy manuals and instructions are not required, a down loadable version off the internet will be less expensive, if available.

OEM software: OEM stands for "Original Equipment Manufacturer" and refers to software sold in bulk to resellers, designed to be bundled with hardware. For example, Microsoft has contracts with various companies including Dell Computers, Toshiba, Gateway and others. Microsoft sells its operating systems as OEM software at a reduced price, minus retail packaging, manuals and installation instructions. Resellers install the operating system before systems are sold and the OEM CD is supplied to the buyer. The "manual" consists of the Help menu built into the software itself. OEM software is not legal to buy unbundled from its original hardware system.

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