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A computer system is sometimes subdivided into two functional entities: hardware and software. The hardware of the computer consists of all the electronic components and electromechanical devices that comprise the physical entity of the device. Computer software consists of the instructions and data that the computer manipulates to perform various data-processing tasks. A sequence of instructions for the computer is called a program. The data that are manipulated by the program constitute the data base.

A computer system is composed of its hardware and the system software available for its use. The system software of a computer consists of a collection of programs whose purpose is to make more effective use of the computer. The programs included in a systems software package are referred to as the operating system. They are distinguished from application programs written by the user for the purpose of solving particular problems. For example, a high-level language program written by a user to solve particular data-processing needs is an application program, but the compiler that translates the high-level language program to machine language is a system program. The customer who buys a computer system would need, in addition to the hardware, any available software needed for effective operation of the computer. The system software is an indispensable part of a total computer system. Its function is to compensate for the differences that exist between user needs and the capability of the hardware.