Why “Application software” is important in the software industry

Application software is the software that you install on your operating system.

Anne Shields - Author

Nov. 13 2019, Updated 3:51 p.m. ET

Application software

“Application software” or “software applications” (or apps) help the end users perform single or multiple tasks. Application software finds its presence in enterprise as well as non-enterprise applications. Enterprise “application software” includes enterprise resource planning (or ERP), supply chain management, embedded software, and customer relationship management.

Non-enterprise application software includes:
• Entertainment – game applications for media, CD, and DVD—like Solitaire and Rhapsody
• Graphics – applications for image organizing, editing, and sharing—like HP (HPQ), Photosmart Essentials, Adobe Illustrator (ADB)
• Security – applications to detect firewalls and antivirus protection—like Norton
• Mobile apps – application software meant for a mobile device, smartphone, or tablet

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As shown in the previous chart, among all enterprise software, ERP application is the largest application used worldwide followed by Office Suites and CRM. ERP is enterprise software that integrates all the operations and functions of an organization. Office Suite refers to a collection of software programs that can interact with each other. As a result, Office Suite programs are generally distributed together (for example—Microsoft Office).

Difference between system software and application software

System software provides the platform for running any application or application software. System software differs from application software because it integrates the computer’s capabilities. However, it isn’t involved in the tasks that benefit the end user. The operating system is the system software that makes your computer work. Application software is the software that you install on your operating system.

Enterprise resource planning and supply chain management includes applications for manufacturing and services. Oracle (ORCL), SAP AG (SAP), Adobe systems (ADBE), and Salesforce.com (CRM) are leading players in this space.

Customer relationship management, a part of the enterprise software market, provides functionality to enterprises in sales, marketing, call center, customer service, and support.


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