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Electronic software distribution (ESD) is the delivery of software to users over an electronic network, usually as an internet download, instead of through a shipped package or physical storage media. ESD describes how software is delivered—not whether it is free or paid, or whether the user gets a perpetual license or subscription.
What electronic software distribution means
The OECD distinguishes electronic software distribution from ordering software online and receiving it by traditional shipment: with ESD, customers download the software through an internet connection. Its 1998 report on electronic commerce gives that concise distinction. The term describes the delivery method, not a single technical system or business model.
In a sales-tax context, the Multistate Tax Commission describes electronic delivery as delivery by means other than tangible storage media. That definition is specific to tax policy, rather than a universal technical standard. See its definitions.
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What an ESD transaction can include
A download is the visible part of ESD, but a distribution arrangement can involve several parties and steps. A publisher may sell directly or work with a storefront, reseller, channel partner, or hosted download provider. Payment checks, entitlement verification, license information, and activation may also be part of the process. Which components appear depends on the arrangement.
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The OECD’s historical example describes a digital package kept locked until payment is approved, after which a key is provided; it also discusses an electronic end-user license agreement as proof of purchase. Microsoft’s May 7, 1996 announcement described a framework spanning order placement, delivery, and installation, with channel partners distributing downloads to users.
As a present-day vendor example, Thales describes Sentinel EMS downloads as software delivered over the internet instead of on physical media, and its Sentinel ESDaaS as a hosted service for software storage and distribution. These examples illustrate possible implementations; neither makes a particular architecture mandatory for ESD.
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What ESD does—and does not—tell you
- Online purchase is not necessarily electronic distribution. A website order can still result in boxed software arriving by mail. ESD refers to electronic delivery of the software itself.
- Downloading is the common delivery mechanism, not the whole transaction. An ESD process may also handle ordering, payment, entitlement, licensing, or activation.
- Delivery format does not determine usage rights. A download may come with permission to use the program, subject to the applicable license. The U.S. Treasury discusses this distinction in its remarks on electronic commerce.
- ESD does not require one particular distributor. A publisher, channel partner, or hosted provider can participate in delivery.
ESD, electronic delivery, and downloads
Sources use both “electronic software distribution” and “electronic software delivery” in ESD-related contexts. Vendor terminology can vary, so define the intended meaning when using the acronym. In this article, ESD means electronic software distribution: software is delivered electronically rather than on physical media.
In short, downloading is usually how ESD reaches a user, while ESD can describe the broader fulfillment process around that download. The exact roles, checks, and licensing steps depend on the publisher’s or provider’s setup.
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Frequently Asked Questions
What does electronic software distribution (ESD) mean?
ESD means software is delivered to users electronically, typically through an internet download, rather than through physical media.
Is ESD the same as downloading software?
Downloading is the common delivery method, but an ESD transaction may also include ordering, payment or entitlement checks, and license or activation steps.
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