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What is embedded software?

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Overview

Embedded software, also known as OEM software or embeddable software, consists of pre-built, ready-to-integrate components—such as APIs, SDKs, libraries, or modules—designed to deliver specific functions in new or existing apps.

Instead of building every feature, developers, independent software vendors (ISVs), and enterprise engineering teams can embed these reusable components to:

  • Accelerate product development
  • Fill technical gaps without new hires
  • Focus internal teams on innovation

Embedded software

How does embedded software work?

Embedded software components typically work through a combination of the following:

  • API/SDK/library interfaces
    The component provides documented interfaces (functions, classes, services, REST APIs, etc.) that your main application or solution calls in to or interacts with.
  • Modular/plugin architecture
    Your application is structured so that certain concerns—logging, data access, reporting, etc.—are pluggable or can be swapped. Embedded software fits into “slots” or modules rather than being monolithic.
  • Configuration and customization points
    Embedded components often support customization—settings, themes, localization, extension hooks, and possibly code-level extension or plugin hooks—so the embedding solution can tailor behavior.
  • Dependency management and versioning
    You’ll manage version compatibility (component vs your app stack), dependencies, updates, and ensure that embedded pieces don’t break your existing functionality.
  • Licensing, support, and maintenance
    Purchasing or licensing embedded software typically includes terms for updates, bug fixes, support, and possibly indemnification. Choosing reputable components matters.

What are the key characteristics of embedded software?

These components offer specialized functionality that accelerates development, reduces cost, and strengthens product differentiation. Here's what makes embedded software essential for modern ISVs and developers:

  • Designed for integration: Built specifically for embedding within other software systems. These aren’t standalone apps—they're designed to plug into your existing architecture with minimal friction.
  • API/SDK-driven: Offers well-documented APIs or SDKs that plug in to business logic, data pipelines, and user interfaces.
  • Delivers specialized functions: Embedded software delivers complex capabilities like file content extraction, named entity recognition, workflow engines, data visualization, or compliance automation—all without building them from scratch.
  • Flexible licensing: Embedded software is available under commercial, SaaS, OEM, and white-label licensing, allowing you to choose the best model for your go-to-market strategy.

What are the key benefits of using embedded software?

Benefit Why it’s important
Time savings Faster time to market through rapid inclusion of ready-to-use functionality.
Lower development cost Less time spent on building, fewer specialist hires needed.
Focus on differentiators Internal teams can concentrate on what makes your product unique.
Reduced risk Proven components bring stability, known performance, and fewer surprises.
Scalability Embeddable components that are designed for scale help ensure the overall system scales well without custom scaling engineering in every module.
Better maintainability Updates and fixes are often rolled out by component providers. You benefit from upstream bug fixes.
New business opportunities Access to new services and functionalities allows ISVs to jump into new RFPs and business opportunities.

Why is embedded software important to ISVs and software manufacturers?

For ISVs and organizations that build software products or solutions (for resale or deployment), embedded software is important because it enables:

  • Accelerated development cycles: Instead of building every subsystem, teams can embed proven components, reducing time spent on reinventing basic features.
  • More efficient use of headcount and resources: Developers and engineers can focus on core differentiators and business value rather than low-level or commodity functionality.
  • Closing expertise gaps: Some components require deep technical specialization (e.g. image recognition, telemetry, hardware interfacing, security, real-time constraints). Using third-party embedded software leverages external expertise.
  • Improved quality and reliability: Mature components tend to have undergone testing, optimization, and perhaps wide usage, reducing bugs relative to in-house rewrites.
  • Cost savings over time: Though there’s upfront licensing or acquisition cost, the cost to build, maintain, and support subsystems internally can exceed the cost of embedding something proven.
  • Faster time to market and competitive advantage: Being able to deliver features more quickly gains you market share, satisfies customer demands faster, and allows you to react more flexibly to change.

What are the challenges of implementing embedded software?

While embedded software offers significant benefits, there are also common challenges or trade-offs:

Integration complexity: Integrating external modules may require adapting your architecture or dealing with mismatches (data formats, threading models, performance constraints).

Dependency and version risk: You depend on external vendors for updates and bug fixes. If a vendor discontinues a component or updates it incompatibly, you may face maintenance burdens.

Performance or footprint constraints: Some embedded components may be heavier (in CPU, memory, footprint) than a minimal custom implementation, especially in resource-constrained environments.

How OpenText powers embedded software for ISVs

OpenText offers a comprehensive portfolio of OEM or white-label software solutions that help ISVs and software manufacturers embed advanced, ready-to-use functionality into their products. Highlights of OpenText's OEM solutions are:

  • Access to a broad number of embedded software options from all OpenText™ portfolios
    Choose from a wide range of proven software components—spanning content, analytics, security, experience, and more information-management solutions. Whether you're embedding a single feature or an entire capability, OpenText offers flexible licensing and deep integration to help you deliver faster.
  • Ready-to-use embedded software, white label software, and APIs
    OpenText provides information management software components that can be embedded into existing applications, deployed via SaaS, or exposed via APIs. These are designed to streamline the integration of functionality rather than having to build from scratch.
  • Regular updates, maintenance and security
    One of the key advantages is that OpenText handles quarterly updates (feature enhancements, security patches, etc.), so ISVs leveraging embedded OpenText™ components automatically benefit from improvements. This frees internal teams from constantly maintaining commodity or infrastructure features.
  • Flexible deployment options
    The OEM Marketplace offering supports different deployment models—embedded into your application, white-labeled, or via SaaS/APIs—giving ISVs the flexibility to deliver functionality to customers.
  • Wide functional coverage
    OpenText offers a broad set of capabilities commonly needed by ISVs, such as: Capture and digitize (e.g., document scanning, content ingestion), workflow and process automation, analytics, reporting and predictive capabilities, search and discovery, secure content storage and migration, communication and content transformation, etc. These allow ISVs to pick and plug in the modules they need.

What kinds of embedded functionalities does OpenText provide?

Some of the embedded-component functionalities that OpenText makes available to ISVs include:

Functionality Description
Content Document management, AI content management, capture and intelligent document processing, process automation, business integrations, information archiving, information governance.
Analytics Data lakehouse and analytics, BI visualization and reporting, eDiscovery.
Business networks Supply chain automation, B2B integration, secure collaboration, supply chain traceability, supply chain insights.
Cybersecurity Application security testing, data security, security operations, identity and access management, digital forensics and incident response.
Experience Web and mobile experiences, contact center analytics, messaging and fax, customer communications, digital asset management and customer journey and data.
Device and data protection Enterprise data backup and disaster recovery solutions, unified endpoint management, hybrid work, email and team collaboration.

How can I get started with embedded software with OEM solutions?

Getting started with embedded software from OpenText is simple—whether you're building new software or enhancing an existing solution. Our OEM program is designed to help ISVs and developers integrate high-value features like file content extraction, named entity recognition (NER), and rich media analytics into their products quickly and securely.

Explore our OEM solutions

Frequently asked questions about OEM

What kinds of embedded software are commonly used?
It all depends on your needs. Organizations that offer embedded software, or OEM software, usually specialize in specific types of solutions, such as information management, content management, analytics, and security, and provide solutions that support these areas. Companies that embed software into their solutions usually work with more than one company, depending on the expertise required.

How do I choose between building vs buying an embedded software component?
To make the right decision, compare factors such as total cost (including development and long-term maintenance), time-to-market, technical risk, performance, customization needs, and the component’s strategic importance. If the functionality is core to your product’s value proposition, building it in-house may be worth the investment. But for non-differentiating or commodity features, embedding a pre-built solution often offers better ROI.

Even if you have the in-house expertise, tight deadlines or budget constraints may make an embedded software—or OEM—partnership the smarter choice. It’s about accelerating development without sacrificing quality.

How is embedded software licensed?
Licensing models vary: per-seat, royalty-based, subscription, one-off perpetual, OEM/white-label, open source (with various licenses). Be sure to understand usage terms, distribution rights, and support obligations.

How quickly can embedding reduce development time?
It depends on the component’s maturity, how well it matches your needs, and how ready your architecture is for integration. It could be days or weeks saved for simple modules, or months for more complex subsystems.

What is software white labeling?
White labeling is when a company produces a product or service (such as software) that another business rebrands and sells as its own. It allows companies to quickly expand their offerings without building the solution from scratch.

What is the difference between white label and OEM?
OEM software lets you embed specific features—like file content extraction or named entity recognition (NER)—into your own application. You license only the component you need, giving you complete control over the user experience and functionality.

White label software, on the other hand, is a complete solution you rebrand and offer under your own name. It’s ideal when you want a turnkey product without deep integration work.

OpenText™ OEM solutions support both approaches. Whether you're building software from the ground up or rebranding an existing solution, we offer the SDKs, APIs, and flexible licensing options you need—plus enterprise-grade support and security.

What is the difference between OEM on hardware and OEM on software?
For hardware, an OEM (original equipment manufacturer) is a company that makes physical parts or devices that other brands use in their final products. For software, OEM means a company creates software that other businesses embed or bundle into their own solutions, often under their brand.

How can we help?

Footnotes