Systems can be set up with pre-existing subscriptions already available to that system. For some systems which were purchased through third-party vendors, a subscription to Red Hat products is included with the purchase of the machine. Companies can allocate subscriptions to their own systems by creating activation keys which are used to claim those assigned subscriptions.
Red Hat Subscription Manager pulls information about the system hardware and the BIOS into the system facts to recognize the hardware vendor. If the vendor and BIOS information matches a certain configuration, then the subscription can be redeemed, which will allow the system to be automatically subscribed to the entitlements purchased with the machine.
This diverges from the normal subscription process by adding an extra step: