Types of Application Software Explained: A Practical Guide for Businesses

So many variations and versatility often confuses.

We are here to address this confusion. Softude knows the ins and outs of mobile and web application software development, from its core definition, types, to tips for choosing the right one. We are here to break down every single layer of application software and their functions.

Let’s Start With Understanding What is Application Software

It's universal that software helps perform specific tasks through a set of programs. They are usually built to improve productivity by simplifying the process. For example, data management software helps organize and manage data in one place. This is just one of many examples of different application software; rest include:

• Productivity tools such as MS Word, MS Office
• Browsers like Google Chrome, Firefox, etc
• Designing tools such as Adobe Photoshop, Figma
• Multimedia software such as Spotify, MX player, etc,
• Zoho, Trello, Zira, Asana, and other project management tools.

What Does Application Software Do?

The workings of application software depend on the intent behind its development. Some are general-purpose applications for improving communication or performing tasks quickly, while others are specific software developed for core business functions like data analysis, customer relationship management, etc.

Different Types of Application Software Available

Banking, healthcare, and the automotive industry all need software to operate. Software is like oxygen in the digital world, helping every business survive. However, the software is categorized to make it appropriate for each business and operation.

Category 1: General Application Software

Everyone uses MS Word or MS Excel. These are general-purpose software because they perform tasks applicable everywhere, such as simple calculations, documentation, creating presentations, surfing the Internet, etc. From technical to non-technical users, businessmen to students, everyone needs such software in their daily lives.

There is further categorization of general application software:

• Word processing software
• Spreadsheet software
• Database software
• Presentation software
• Education software
• Web browsers
• Simulation software
• Gaming Software
• Security software

Category 2: Business Application Software

You must have got a hint about this category. Unlike general purpose, these target businesses such as eCommerce or gaming. They are either for internal use or for their customers and offer features and functionalities for various challenges and problems businesses face, like managing inventory or customer relationships.

Business application software is sometimes known as off-the-shelf software because it is readily available. Businesses can use it by paying a subscription fee or purchasing a license.

Some even allow customization options to modify the features or integrate with other systems and software. This, again, depends on where you want to use the software. We have a few examples of off-the-shelf software:

• Slack
• Mailchimp
• Oracle
• Zoom
• HootSuite

Category 3: Custom Application Software

The most popular category of application software is this one. Unlike the above two, custom software is not ready to use and is not widely available. Businesses hire a custom software development company to develop software according to their list of requirements.

For example, for general purposes and business software, custom applications target audiences on every channel. They can be mobile apps or complex enterprise applications. As businesses expand, these software also grow in size and functionality.

A few examples of custom software:

• Sales management system
• On-road vehicle assistance application
• Complaint management system
• Local advertising platform
• Student management application

Does custom software have license fees? Not at all! However, the cost of development can be higher than license fees. Again, it depends on features, complexity, and integrations. Consult the best software development company to know the actual cost.

In addition to these three categories of application software, there is one more aspect that differentiates them: how it is shared and purchased.

• Freeware: Anyone can use freeware software without paying anything. However, users cannot modify or personalize it.
• Shareware: Users must pay a fee to use shareware software after a free trial period.
• Open-source: Although open for public use, such software may ask for a small payment. Only source code is free, so users can modify or add more features.
• Closed-source: Applications where source code needs security and is intended for private use are usually closed-source.

5 Benefits of Using Custom Application Software

Although general and business applications reduce your workload and improve efficiency, we recommend custom software. These are good for your business, and here’s why.

1. Enhanced User Experience

If your customers are happy, your business will keep growing. Custom software takes care of your customers' experience by urgently connecting them with your team. A customized application is completely centered around your customers. It gives them what they expect-easy-to-navigate features, a simple and interactive interface, and quick support. 

2. Flexibility

Every other option is rigid. They have features you may or may not want to use. However, custom software is flexible in every way. You can add as many features as possible or integrate with multiple systems.

3. Better Productivity

Although general-purpose and business software improves productivity, custom software goes a little extra mile. It is built around your company's exact workflow. Real-time reporting, predictive analysis, and compatibility with your core business tools are a few advantages of custom software that boost productivity.

4. Data Security

General software lacks advanced security features to safeguard your business. On the other hand, custom software can add tight security with features like multi-factor authentication, end-to-end encryption, and biometric-based authentication.

Along with safeguarding against cybercrimes, custom software is built to maintain compliance with standards like GDPR or HIPAA necessary to work in your industry.

5. Decision-Making Power

Software is not just for doing things faster but also for planning future actions based on analytics and insights. Custom software keeps track of all past activities and offers the power of forecasting.

Need Application Software?

Randomly picking any application software won’t give you the desired results. You may either feel unsatisfied or end up paying more. Don’t worry! We have prepared a short checklist to help you get the right application software for your business.

• Jot down your expectations with the software.
• Narrow down the list of application software that falls into your industry and expectations.
• Check if they are free, on-trial, or premium applications. Pick one that matches your budget.
• Rate the software based on reviews, security, and functionality.
• Finalize the one that meets all your needs.

If nothing fits, get custom software from an experienced software development company. Again, you need to do a little research and background analysis to find an ideal partner. The right one is one that knows your industry well or has developed software similar to your expectations. Do check their portfolio and reviews from past clients. 

Conclusion

Application software is the lifeline of any business. So, having the right one is very important. There are too many, from general-purpose software such as MS Office suite to custom software like inventory management software. Some are free while others charge fees. Some are secure while others offer basic levels of security. 

There are too many factors to consider when purchasing application software. Custom software can be a good option if you prioritize security and need software dedicated to your business.