OEM in IT Glossary

(pronounced as separate letters) Short for original equipment
manufacturer, which is a misleading term for a company that has
a special relationship with computer producers. OEMs buy computers
in bulk and customize them for a particular application.
They then sell the customized computer under their own name.
The term is really a misnomer because OEMs are not the original
manufacturers -- they are the customizers.
Contrast with IHV.