Hi Kuku,
As you said, both are transceivers but the MMD has some extended feature compared to MM. The below are the differences between these two types of transceivers.
GLC-SX-MM
1000BASE-SX SFP transceiver module for MMF, 850-nm wavelength, dual LC/PC connector
GLC-SX-MMD
1000BASE-SX SFP transceiver module for MMF, 850-nm wavelength, extended operating temperature range and DOM support, dual LC/PC connector
The MMD supports DOM whereas the MM doesn't suppor the same.
This URL will be useful for you. It contains the compatibility matrix and the IOS it supports.
http://www.cisco.com/en/US/docs/interfaces_modules/transceiver_modules/compatibility/matrix/OL_6981.html
Thanks,
Anand G
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