How about software vs application? To make it easier we are going to start by knowing a little bit more about what software is. In simple understanding software is a terminology that is used to called computer part which is not tangible. The tangible component of computers. In short everything else in your computer that makes it able to run any data processing is software. So, is application part of software? In fact application is part of software. But, not all softwares are application. Basically application is a particular software that performs particular tass.