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Upon successful completion of this chapter, you will be able to:
- define the term software;
- describe the two primary categories of software;
- describe the role ERP software plays in an organization;
- describe cloud computing and its advantages and disadvantages for use in an organization; and
- define the term open-source and identify its primary characteristics.
The second component of an information system is software. Simply put: Software is the set of instructions that tell the hardware what to do. Software is created through the process of programming (we will cover the creation of software in more detail in chapter 10). Without software, the hardware would not be functional.
Types of Software
Software can be broadly divided into two categories: operating systems and application software. Operating systems manage the hardware and create the interface between the hardware and the user. Application software is the category of programs that do something useful for the user.