Learning Objectives

  • Define software and relate it to hardware.
  • Distinguish system software from application software, with examples.
  • Classify software by licensing: proprietary, open source, freeware, and shareware.
  • Preview how software is acquired and written.

Next: system vs application software, acquisition, programming languages, operating system.

What software is

Software is a set of instructions (plus associated data) that tells hardware what to do. Hardware is the body; software is the behavior. The same PC can be a word processor, a spreadsheet, or a web browser depending on which programs run.

A program is a single set of instructions; software usually means a program together with its documentation and data files.

Characteristics of software

  • Intangible — it cannot be touched, only experienced through the hardware.
  • Does not wear out — but it becomes outdated and needs updates.
  • Easily copied — which is why licensing and piracy matter (Unit 9).
  • Customizable — it can be modified to fit new business rules.

Two main types

System software manages the machine: operating system, device drivers, utilities. Users rarely “open” it as a document; it runs in the background so applications can use disk, memory, and network.

Application software performs user tasks: Word, Excel, a banking app, a browser. Organizations spend most of their license budget here because this is where business processes live.

Firmware (BIOS/UEFI) sits in between: software stored on a chip that starts the hardware before the OS loads.

flowchart TB
  U[User] --> A[Application software: Excel, Tally, browser, mobile banking]
  A --> S[System software: operating system, drivers, utilities]
  S --> F[Firmware: BIOS/UEFI]
  F --> H[Hardware: CPU, memory, disk, network]

Classification with examples

Type Sub-type Examples
System software Operating system Windows, macOS, Linux, Android, iOS
  Device drivers Printer driver, graphics driver
  Utility software Antivirus, disk cleanup, backup, file compression
  Language translators Compilers, interpreters, assemblers
Application software General-purpose Word processor, spreadsheet, presentation, browser
  Specific-purpose / business Accounting (Tally), payroll, hotel booking, POS
  Custom (tailor-made) A college’s own exam-result system

Software by licensing

  • Proprietary (commercial) — owned by a company; you buy a licence to use it but cannot see or change the code (Microsoft Office, Windows).
  • Open source — source code is available to view, modify, and share (Linux, LibreOffice, Firefox).
  • Freeware — free to use but code is closed (many free mobile apps).
  • Shareware / trial — free for a limited time or with limited features, then paid.
  • SaaS (Software as a Service) — used through the browser on subscription (Google Workspace, Microsoft 365).

Why types matter in exams and jobs

A question that says “give two examples of system software” is not asking for Photoshop. Build-versus-buy, licenses, and OS choice all depend on knowing which layer you are talking about.

Common mistake: listing a web browser as system software. A browser serves the user’s task of viewing websites, so it is application software.

Nepal / business example

A campus computer lab needs an OS and antivirus (system) plus Office or LibreOffice (application). Buying only applications without a licensed OS is not a complete stack.

Scenario: a small trading firm in Biratnagar needs to computerize. It needs Windows or Linux (system software), drivers for its printer and barcode scanner (system), antivirus and backup (utilities), and an accounting package such as Tally plus a spreadsheet (applications). Choosing LibreOffice instead of a paid office suite is a licensing decision, not a change of software type.

Key Takeaways

  • Software instructs hardware; without it, hardware cannot do useful work.
  • System software manages resources; applications serve users.
  • Firmware starts the machine before the OS.
  • Software can also be classified by licence: proprietary, open source, freeware, shareware, and SaaS.

Discussion Questions

  1. Is a web browser system or application software? Why?
  2. Can application software run without an OS on a typical PC?
  3. Name one utility and explain why it is not an “app” in the business sense.

Exam-Style Questions

Short answer

  1. Define software. How is it related to hardware?
  2. Differentiate between system software and application software with two examples each.
  3. What is open-source software? Give two examples.

Long answer

  1. Classify computer software with suitable examples and a diagram.
  2. A new business is setting up its office computers. Explain what system and application software it needs and the licensing options it can consider.