Windows 11 IoT Enterprise OEM Licensing vs Volume Licensing – What’s the Difference?

Windows 11 IoT Enterprise OEM Licensing vs Volume Licensing

When deploying Windows 11 IoT Enterprise across industrial PCs, embedded systems, kiosks, medical platforms, or edge devices, understanding the licensing model is critical. Two primary licensing routes are available, OEM Licensing (Original Equipment Manufacturer) and Volume Licensing. While both provide access to Windows 11 IoT Enterprise, they are designed for very different deployment models, activation methods, and long-term management strategies. In this article, we break down the differences, explain key licensing terms, and provide a quick overview of installation and activation.

What is Windows 11 IoT Enterprise?

Windows 11 IoT Enterprise is a full version of Windows 11 designed specifically for fixed-purpose and embedded devices.

Unlike Windows 11 Pro or Enterprise, IoT Enterprise is licensed specifically for embedded and dedicated devices.

Key Licensing Definitions

• OEM (Original Equipment Manufacturer): A licence provided by Microsoft that is tied to specific hardware and preinstalled by the device manufacturer.
• LTSC (Long-Term Servicing Channel): A release model that provides long-term stability, security updates only, and minimal changes, perfect for mission-critical devices.
• OA3.0 (OEM Activation 3.0): A factory-level activation method where the product key is embedded in the device firmware (BIOS/UEFI) for automatic activation.
• ePKEA (Embedded Product Key Entry Activation): An activation method for embedded devices using a key embedded in the system during setup.
• PKEA (Product Key Entry Activation): A manual method of entering a product key during installation or post-installation, commonly used in volume licensing.
• KMS (Key Management Service): A volume licensing activation method that allows multiple devices within an organisation to activate Windows through an internal server.
• MAK (Multiple Activation Key): A volume licensing method that allows a specific number of activations directly with Microsoft servers.

LTSC – Long-Term Servicing Channel

LTSC (Long-Term Servicing Channel) is a specialised release model of Windows 11 IoT Enterprise designed for fixed-purpose and mission-critical devices that require long-term stability. Unlike standard Windows releases that receive regular feature updates, LTSC versions focus exclusively on security and quality updates, avoiding disruptive feature changes. This makes LTSC ideal for industrial automation systems, medical platforms, kiosks, transportation systems, and other embedded applications where consistency and validation are essential. With extended support lifecycles — typically up to 10 years — LTSC ensures predictable performance, reduced maintenance overhead, and long-term regulatory compliance for specialised deployments.

Both OEM and Volume Licensing models can include LTSC versions of Windows 11 IoT Enterprise, making it ideal for medical, industrial, and mission-critical applications.

OEM vs Volume Licensing – Comparison Table

Feature	OEM Licensing	Volume Licensing
Intended For	Device manufacturers & system builders	Enterprises & large organisations
License Tied To	Specific hardware device	Organisation agreement
Transferable	No	Limited flexibility depending on agreement
Activation	OA3.0 or ePKEA	KMS, MAK, or PKEA
Preinstalled	Yes	Not required
Best For	Industrial PCs, embedded systems, fixed-function devices	Corporate rollouts & multi-device management
LTSC Support	Yes	Yes

Installation Overview

Which Licensing Model is Right for You?

Requirement	OEM License	Volume License
New Device	✅ Yes	⛔ No
Upgrade Existing Device	✅ Yes	✅ Yes
Transferrable License	✅ Yes	⛔ No
Activation Methods	OA3.0, ePKEA, PKEA	KMS, MAK

Where to Buy Windows 11 IoT Enterprise Licences

Choosing the correct purchasing route for Windows 11 IoT Enterprise depends on whether you require OEM licensing tied to hardware or a Volume Licensing agreement for organisational deployment.

For industrial deployments, OEM licensing supplied with hardware is typically the most compliant and cost-effective route.

Important Licensing Notice

Windows 11 IoT Enterprise licences should only be obtained through authorised channels. Retail websites selling discounted “volume keys” are typically not compliant and may result in activation issues or deactivation. For industrial and embedded systems, OEM licensing supplied with hardware remains the recommended approach.

Upgrading a Single System to Windows 11 IoT

If you have an existing device running Windows 10 IoT and you want to move to Windows 11 IoT without new hardware, OEM licensing cannot be used, because OEM licenses must be sold preinstalled with new hardware. This leaves two main options for upgrading a single system:

Key Notes:

• You cannot simply “upgrade OEM to OEM” on the same device because OEM licensing is tied to the original hardware and cannot be purchased standalone.
• For a single-device upgrade without buying new hardware, Volume Licensing is the only legitimate Microsoft-approved route.
• If you only need one system upgraded, Microsoft partners can help you obtain a single-device Volume License legally.

Frequently Asked Questions (FAQs)

Q1: Can I upgrade from Windows 10 IoT to Windows 11 IoT?
Yes, you can upgrade, but it requires careful planning to maintain activation and device stability. Key points:

• Confirm your hardware meets Windows 11 IoT system requirements.
• Back up your device and data before upgrading.
• Use official Windows 11 IoT Enterprise installation media.
• Choose in-place upgrade if supported, or perform a clean install while preserving activation keys.
• Reactivate using your OEM or Volume License key if prompted.

Q2: Can I buy a single Windows 11 IoT license on its own?

• OEM licenses must be purchased with qualifying hardware and cannot be bought separately.
• Volume licenses require a corporate or enterprise agreement and are intended for multiple devices.

Q3: What activation methods are used for Windows 11 IoT?

• OEM devices: OA3.0 or ePKEA (automatic activation via firmware).
• Volume Licensing: KMS (Key Management Service), MAK (Multiple Activation Key), or PKEA (Product Key Entry Activation).

Q4: Which Windows 11 IoT edition is right for industrial devices?

• For fixed-purpose embedded devices, OEM with LTSC is ideal.
• For corporate IT-managed fleets, Volume Licensing provides flexibility and centralised activation control.
• Always choose the edition that aligns with your device lifecycle, support requirements, and deployment scale.

Q5: Can Volume Licensing be used for a small number of devices?

• Volume Licensing is designed for medium to large deployments, typically 5+ devices.
• While it can technically be used for smaller fleets, it is often not cost-effective for one or two devices.

Q6: Where can I purchase Windows 11 IoT Enterprise licenses legally?

• OEM licenses must be purchased through an authorised hardware supplier or OEM, like BVM, with the OS preinstalled on the device.
• Volume licenses are obtained via a Microsoft Authorised Licensing Solution Provider (LSP), Cloud Solution Provider (CSP), or Enterprise Agreement partner.
• Avoid retail websites offering discounted IoT volume keys, as these are typically unauthorised or non-compliant.

Q7: How do I ensure my Windows 11 IoT deployment stays compliant and supported?

• Always use authorised licensing channels (OEM or Volume Licensing) for deployment.
• Keep activation methods correct (OA3.0, ePKEA, KMS, or MAK) depending on your licensing type.
• Regularly apply security and LTSC updates to maintain stability and regulatory compliance.
• Maintain documentation of licenses, deployment counts, and hardware associations for audit purposes.

Final Thoughts

Understanding the difference between OEM and Volume Licensing for Windows 11 IoT Enterprise is essential for ensuring compliance with Microsoft licensing, selecting the correct activation method, aligning with long-term support requirements, and planning cost-effective deployments. For industrial and embedded systems, OEM licensing is typically the preferred choice, as it provides preinstalled, hardware-tied activation and long-term stability. In contrast, Volume Licensing offers greater flexibility for enterprise-wide rollouts, enabling centralised IT control, easier management of multiple devices, and streamlined activation across larger fleets.

If you’re deploying Windows 11 IoT Enterprise or other industrial and embedded operating systems, our BVM Embedded Software Services can help. We provide custom Windows IoT, Linux, and Android configurations, delivering tailored OS setups, ready-to-run images, and optimized performance for your devices.📞 Call our sales team on 01489 780144 or 📧 Email: sales@bvmltd.co.uk. With over 35 years’ experience supplying, designing, and manufacturing industrial and embedded computer hardware, we ensure your deployment is fully compliant, stable, and efficient for your application.