Episode 4: What is software?

Understanding what software actually is

Software can seem abstract or complicated, but at its core it is simply code that runs on hardware to perform specific tasks. These tasks might involve calculations, graphical functions, or supporting the applications used every day.

While specialist software buyers understand the deeper technical details, anyone involved in technology procurement or IT strategy benefits from knowing the fundamentals. A clear grasp of how software works makes it easier to select the right tools and avoid costly mistakes.

Breaking down the software stack

A simple three-layer model is used to describe how software works. Each layer depends on the others, and understanding how they fit together helps make better decisions when selecting or licensing software.

Operating systems as the foundation

At the bottom of the stack is the operating system. This is the software that tells the computer what to do, from displaying information on the screen to controlling internal components. Windows is the most familiar example, but systems such as Linux and macOS are also widely used.

Because the operating system underpins everything else, keeping it updated and well-maintained is essential. If it fails, the whole system is affected.

Databases for storing and organising information

The next layer is the database. Databases store structured information and allow applications to retrieve and use it. Although spreadsheets like Excel may look similar, they are not true databases.

Large providers such as Microsoft SQL Server and Oracle dominate this space. Databases must be compatible with both the operating system and the applications being used, which can make procurement more complex.

Applications that deliver business processes

At the top of the stack sit applications, the tools people interact with directly. Examples include email clients, spreadsheets, and enterprise systems. These applications rely on the database beneath them for information and on the operating system to function correctly.

This layered structure means that selecting one piece of software can influence the entire environment. Compatibility across the stack is essential.

Why software procurement is more complex than it appears

Although software is now downloaded rather than shipped on physical media, its commercial complexity has increased. Licensing rules can restrict how many users can access the software, where it can be used, or what rights the organisation has.

Misunderstanding licensing terms can lead to significant costs or compliance risks. The episode highlights two key priorities for effective IT procurement: always review the terms and conditions, and ensure compatibility across the full software stack.

Final thoughts

Software may feel abstract, but the decisions behind it have real operational and financial implications. Understanding the relationship between operating systems, databases, and applications makes it easier to choose software that works reliably and supports long-term technology strategy.

If you’d like advice on choosing the right software, understanding licensing, or making your technology stack work together more effectively, get in touch.