There are two main types of software: system software and application software. System software includes operating systems and disk operating systems, which allow hardware and applications to communicate. Application software accomplishes specific tasks and is divided into user-designed and ready-made categories. User-designed software is tailored for a specific organization, while ready-made software like word processors and spreadsheets are off-the-shelf packages that may not fully suit an organization's needs but are cheaper and easier to use.