The acronym stems from the manufacturing world, referring to the original equipment manufacturer (OEM), such as the hardware components, boards, designs, parts or independently functioning units that could be programmatically customized to create additional, larger solutions. Essentially, OEM is a company that produces parts or equipment used by other larger manufacturers in their product. The same analogy is extended to the software industry are libraries.
Enterprises typically leverage third-party best solutions to create their own branded software portals or web platforms. They repackage and in turn resell these platforms to their customers, who could potentially modify, customize and build on them to create additional end-user products. These original third-party solutions are typically referred to as OEM solutions.