This document discusses different categories of application software. It identifies four main categories: packaged software which meets the needs of many users; custom software which is tailored to a specific business; web applications which can be accessed online; and open source software which can be freely modified and distributed. It also discusses other types like shareware, freeware, and public domain software and explains their basic definitions. Finally, it briefly discusses the role of system software in interfacing between users, applications, and computer hardware.