System Software Vs. Application Software: Which is The Best For Your Business?
Application Development
Ricky Philip November 29, 2022


  • Every organization requires some software solution in order to run business operations efficiently. 
  • Software solutions are pivotal in improving business productivity, increasing revenue, providing better customer services, and much more.  
  • There are system software and application software. What is the difference between these two, and what does it mean for businesses?

Both application and system software help the computer to perform specific tasks and allow users to interact with the system. These software solutions can be prominently differentiated based on their functioning, purpose, and design. 

System software includes all of your operating systems and the applications that run your system. It’s what runs your computers at home, in the office, and everywhere else in between.

Application software, on the other hand, includes everything else. For example, the daily stuff that we use, such as databases, web browsers, email programs, and more.

It is a common misconception that businesses should focus only on system or application software in their overall IT strategy. 

The truth is they should focus on both. But some businesses prioritizes system software. Why?

Let’s find out…

Importance of System Software

You need system software to build a business. System software is the more important part of your business because it forms the foundation for everything else. If you’re building a business and ultimately want to sell that product or service, your system software (i.e., the apps that make up your core functionality) must be top-notch. If you don’t have a good system, users will not trust what you’re offering, and they won’t be able to use it effectively.

For example, suppose a software development company is building an online store for selling clothes. The application software will likely be much different than the system software because the app will perform several functions, including payments, shipping labels, etc.

Difference Between System Software and Application Software

What Is A System Software?

System software is a collection of software tools and services that allow users to interact with a computer system. The term can refer to an entire operating system, or it can simply refer to a single application or program within an operating system.

System software is designed to handle specific tasks on a computer, such as allowing users to run certain programs and access certain files. Separate applications in other contexts often handle these types of tasks, but they have been grouped into a single category because they all serve similar purposes. System software provides an interface between the hardware and the user. The software allows you to use your computer, whether it be a desktop or laptop.

Moreover, the system software is mainly used to perform a specific task, such as controlling input devices, interacting with other programs, and handling storage and display. In addition, some systems have multiple operating systems installed on them. These operating systems can differ regarding features, resources, and application programming interfaces (APIs).

Benefits of System Software:

1) System Software enables you to manage your computer efficiently. It is responsible for managing all the hardware components of your computer, like CPU, RAM, Hard Disk, etc., which help you perform various tasks conveniently across your PC or laptop.

2) A well-designed System Software helps you maintain your PC or computer safely without any problems due to its smooth functioning and proper system functioning.

3) It allows you to use different applications simultaneously without interfering with each other’s performance. 

4) It is an important aspect of modern computing because most computers are now networked together—a network cable or wireless connection can connect them. For all these computers to communicate with each other, they need a common set of rules for exchanging information. These rules are enforced by system software, which controls things like who can access files and when and where on the network.

5) System software can also include device driver software, which lets you use your computer’s hardware features, such as CD-ROM drives or printers, without worrying about making changes. Device driver software is often combined with system software into one integrated program so that only one program needs updates when there are updates for both programs at once.

What Is An Application Software?

Application software is a set of programs that work together to perform a particular function or support other software programs’ work. Application software includes all computer programs that run on your computer, including those for word processing, spreadsheets, and presentations.

Application software runs on top of the operating system and allows your computer to work more efficiently. The term “application software” usually refers to programs that perform a single task or series of tasks, but it can also be used to describe programs that do not do a specific task well. The application can be for any business, including finance and accounting, manufacturing, human resources, management, etc.

Benefits of Application Software?

1) Application software generally offers greater stability than many other types of software. This is because it has been tested by millions of users and can be relied on to perform reliably.

2) It works with other application software to provide you with a full range of applications. For example, suppose you have Microsoft Office installed on your computer. In that case, it will work with many other applications like PowerPoint, Excel, and Word, as well as browser plug-ins such as Adobe Acrobat Reader or Microsoft Silverlight.

3) Most application programs are relatively easy to install and use. You may need help from a trained technician, but most applications come with their user manuals, which tell you how to use them effectively.

4) It significantly increases productivity. If you are familiar with MS Office, you know how much time you spend on repetitive tasks like creating a spreadsheet or editing a document. With application software, these tasks can be automated and performed by the software itself. This means your time will be spent more productively rather than doing something manually repeatedly!

5) One of the biggest benefits of using application software is that it can automate routine tasks such as data entry into spreadsheets and databases. You no longer have to worry about entering data manually every day or week; instead, you have to input some data once and let the program do the rest for you! This saves both time and money!

Most Popular Questions

Question: What are examples of system software and application software?

Answer: Some examples of system software are:

  • Middleware
  • Driver software
  • Programming software
  • Freeware
  • Open source software
  • Proprietary software or closed software

On the other hand, some examples of application software are:

  • Word Processors
  • Web Browser
  • Media Player
  • MS Office
  • PowerPoint
  • Excel
  • Outlook

Question: Is the Operating System (OS) a system software?

Answer: Yes. The operating system (OS) is the best-known example of system software. Apple macOS, Microsoft Windows, Google’s Android OS, Linux Operating System, and Apple iOS are the most prominent Operating Systems available today.

Question: How is system software developed?

Answer: A software development company usually develops systems software. The process usually includes the idea conception, design, development, testing, and software deployment.


Looking to build innovative software solutions? At ThinkPalm, we can create application and System software solutions that can meet your business demands. ThinkPalm has developed futuristic products for the global giants of Manufacturing Industries, Retail Sectors and Telecom Industries, International Healthcare Academies’ and Educational Institutes. Throughout the lifecycle of product development solutions, from the conceptualization of the idea to the deployment of products, our team owes to building smart, secure, and cross-platform solutions that reduce the overall costs of running a business. We also continue to provide aftermarket services that have been instrumental in assisting clients in improving their business and reducing operational costs. Schedule a FREE consultation to develop innovative applications or system software. 

Author Bio

Ricky Philip is a content strategist, who has an unparalleled dedication to building productive and engaging website content that attracts traffic and increase search engine rankings. If not typing furiously on his keyboard, Ricky is constantly learning ways to enhance search traffic acquisitions.