Three broad types of application software are available for business users: individual, collaboration, and vertical programs.
Individual application software refers to programs individuals use at work or at home. Examples include word processing, spreadsheet, database management, and desktop publishing programs.
Collaboration software (also called groupware) enables people at separate P workstations to work together on a single document or project, such as d a new automobile engine.
a Vertical application software is a complete package of programs that work together to perform core business functions for a large organization. For bank might have a mainframe computer at its corporate headquarters connected to conventional terminals in branch offices, where they are used by managers, tellers loan officers, and other employees. All financial transactions are fed to the central computer for processing. The system then generates managers' reports, account statements, and other essential documents. This type of software is usually custom built and is frequently found in the banking, insurance, and retailing industries.
Commercial Application Software
Application software is also categorized by its market availability. Commercial software is intended for businesses or other organizations with multiple users. Packaged application software is available in the mass market for purchase or lease, whereas customized software is usually developed to meet the special needs of a single company. Because packaged programs have a huge market, they cost much less than a custom program built for one customer.
Packaged Software Packaged software includes programs created and sold to the public on a retail basis by software development companies such as Microsoft. Adobe, and Corel. Both individuals and companies buy commercial software, although businesses typically purchase network versions that can be installed on servers for access by more than one employee.
These products are considered proprietary software, meaning that a com- pany or an individual owns the copyright. A license packaged with the software grants the customer or user permission to make a backup copy, but prohibits the distributing of copies to other people. The illegal copying or unauthorized use of copyrighted software is called software piracy. By completing and submitting the product registration information, purchasers receive a license from the manufac turer granting them the right to use, but not own, the software. In a network envi- ronment, a site license provides multiple-user rights. Registering the software provides the benefits of technical assistance and notification of software upgrades.
Packaged software can be obtained from many sources, including manufacturers, computer stores, bookstores, mail-order houses, and the Internet. Programs pur- chased through a retail source are usually contained on one or more CD- or DVD- ROMs and come in a box with documentation and a registration card. Programs purchased and downloaded from a Web site typically include online documentation and an electronic registration form that can be e-mailed to the vendor. Many appli- cation programs are commercially successful and are periodically upgraded, while others enjoy only brief marketplace popularity and soon disappear.
Customized Software Businesses often have needs that commercial software
cannot meet. For example, since payroll data and processing requirements vary among companies, commercial payroll programs may lack certain specialized fea- tures. The alternative to purchasing commercial software is to hire programmers to develop software to meet the company's requirements. The resulting software is called customized software or a custom program, and is usually owned by the customer. Because of their unique processing requirements, large businesses ofte maintain a substantial inventory of customized application software programs.