1. Hardware : All the components of a computer discussed earlier are known as “Hardware”. These include keyboard, monitor, CPU, magnetic recorder, etc.
2. Software : In order to solve a problem with the help of computer a sequence of instructions written in a proper language will have to be fed into the computer. A set of such instructions is known as a “Program” and the set of programs is called “Software”. A computer machine (hardware) can be used for various purposes only by a change of program (software). For example, a computer by feeding a particular software can be used to prepare pay roll whereas by feeding a second software, it can be used to prepare accounts and similarly by feeding a third software, it can be used for inventory control and also by feeding a fourth software, it can be used for word processing. No change is to be effected in a computer (hardware) for putting it to various uses.
A very large number of software packages recorded on the floppy discs are available in the market. Each floppy disc is accompanied by a “Manual” wherein the details of the programmes recorded on the floppy disc and the method of its use is explained in detail.