Hardware

Refers to anything you can touch. This includes objects such as the keyboard, mouse, monitor, printer, chips, disks, disk drives, and CD recorders.

Software

The instructions issued to the computer so that specific tasks may be performed. Another word for software is program. There are two basic types of computer software: applications software and systems software. Application software helps you perform a specific task. Systems software refers to the operating system and all utility programs that manage computer resources at a low level. Figuratively speaking, applications software sits on top of systems software. Without the operating system and system utilites, the computer cannot run any applications program. Example of operating system software is Windows XP.