Today’s most innovative technologies depend on three critical components working together: Hardware, software and firmware. Hardware components are physical objects (such as computers, processors or cards), while the terms software and firmware refer to sets of instructions that hardware devices need to function. 

Although firmware and software are so similar that they are often used interchangeably, there are a few critical differences worth understanding when assessing each for business need.

Firmware, also known as ‘software for hardware,’ is code that’s embedded in a hardware device—such as a computer system or mobile device—to help it function. 

Firmware delivers the instructions for how a device should start up, interact with other devices (such as routers or remote controls), and execute input/output (I/O) tasks. It can be regularly updated to fix problems, add features, or increase compatibility. 

The term ‘firmware’ was coined by the American scientist Ascher Opler in 1967 to describe a program that he said was ‘in-between hardware and software¹.’ Today, many popular devices, such as TVs, smartphones and cameras, need firmware to function.

Software is a set of instructions that guide the key operations of a computing device. 

Software can be written in many different languages, or programming codes, including the popular Python, Java and Structured Language Query (SQL). Software has many purposes but is generally grouped into two large categories—software that is written for operating systems (OS) and software that is written for applications.

Perhaps the most important difference between firmware and software is that while firmware helps devices boot up and communicate, software is focused more on user interaction. 

Manufacturers frequently update firmware to add new features, enhance security and protect devices against vulnerabilities. As any user of an Android or iOS phone knows, firmware version updates need to be downloaded and installed regularly or they will affect device performance.

Software, by comparison, is installed on electronic devices to improve user experience on activities like browsing the internet, checking email, word processing, watching videos, streaming music and much more. Here are some of the most important differences to consider when assessing the technologies. 

Firmware tends to focus on low-level instructions with a specific function, often directly related to control over the device it’s been programmed for. Software tends to concentrate more on computer programs a user will interact with that run on the device. 

Another key difference in terms of functionality is that software programs can function on many different devices, while firmware will typically only function on the device it’s been programmed for.

The development, or ‘dev,’ environments differ considerably depending on whether you’re building firmware or software. Software development uses higher-level programming languages, including Python and C++, while firmware relies on C or a simple assembly language. 

Software developers typically use a wider array of frameworks and tools than firmware programmers, such as integrated development libraries (IDEs) and code libraries. Firmware developers are restricted to tools that have been built for a specific platform, such as the menu on a smart TV, and often are required to focus on more basic functions including booting and debugging.

Testing is a crucial phase to building effective firmware and software solutions. With firmware, the testing phase concentrates on how solutions interact with hardware to help ensure proper functionality and to help ensure ‘bricking’ doesn’t occur. Bricking is when an update to firmware causes a device to become inoperable by accident. Developers ensuring a firmware update is going to work properly often test different scenarios by using debugging tools and emulators. 

In software testing, developers use different tools and procedures than in firmware testing to identify and fix bugs and determine whether the software is operating effectively. While firmware testing is done on hardware, and in particular a device’s ROM where firmware is stored, software testing is done on specific platforms. 

Both firmware and software are frequently updated over the internet using a 5G wifi or ethernet connection. Software updates are a higher level than firmware updates, which focus on device functionality as opposed to user interaction. Software updates are aimed at applications that run on a device, such as word processors and internet browsers, while firmware updates target underlying, core functionality that is critical to device performance, such as its OS. 

Another difference is that firmware updates are less frequent than software updates and carry a higher risk of bricking because of their closer connection to the hardware. Given the complexity of the devices firmware and software are deployed on, from laptops and gaming consoles to smartphones and driverless cars, updates are critical to performance.

Many successful modern enterprises rely on firmware and software for various business needs, here are some of the most common benefits:

• Ease of delivery: Today, most enterprise applications are delivered as software as a service (SaaS), making installing and updating them much easier than in the past. SaaS solutions are application software hosted on the cloud and used over an internet connection by way of a web browser or mobile app. Firmware solutions are also installed and updated remotely, via an internet download link or as an automatic update requiring a simple device restart to install.
• Enhanced performance: Firmware and software improve the performance of many devices that enterprises rely on to stay secure and innovative and deliver new features to their customers. For example, gaming and entertainment companies use firmware and software to help ensure their apps work seamlessly and customers can use them in the way they were designed.
• Faster issue resolution: Firmware and software play crucial roles in helping resolve customer issues quickly and effectively. For example, imagine that a new component—such as a speaker or camera on a smartphone—isn’t working. Rather than recalling the device to the factory, the manufacturer can issue a simple firmware update that can be easily downloaded and installed overt the internet. When it comes to software, updates often include security updates along with new features and functionality. For example, Apple’s “Sonoma” OS update included new ways for users to protect their passwords, new video conferencing capabilities and new desktop widget functionality, among others.      
• Reduced cost: Firmware and software help businesses of all sizes lower their bottom line in several ways. One example is preconfiguration where software applications purchased using a SaaS model are already pre-configured when they are downloaded. All a user must do is provision a cloud server and the application will be ready to go in a few hours. SaaS also helps reduce the cost of licensing because most applications in a SaaS model are on shared or multitenant environments.

Firmware and software are so similar that they are often referred to interchangeably. However, there are a few differences in the ways they function that are worth considering when assessing their suitability for a business purpose.

Firmware is installed on a device while the device is being manufactured. Primarily, it facilitates communications between the operating system (OS) and the device itself. The computer’s central processing unit (CPU), the place where data input is transformed into information output, retrieves firmware from a computer’s memory and executes it.

Located in a device’s nonvolatile memory, where content can be stored when a device is off, firmware can be written to a number of different memory types, including random access memory (RAM), read-only memory (ROM), erasable programmable read-only memory (EPROM) and flash memory. As the complexity of tasks required of firmware has increased, it has taken on some of the characteristics of computer hardware, namely its use of flash memory and a basic input/output system (BIOS).

Firmware typically stores data in a system’s ‘nonvolatile,’ or ‘read-only’ memory (ROM), also known as flash memory. This type of memory is used in a wide range of portable devices such as flash drives, smartphones, digital cameras, laptops and more, and it is essential to firmware’s functionality. Recently, flash memory has gained some of the same capabilities usually associated with computers.

For example, when a computer is booted up, it goes through a sequence known as the basic input/output system (BIOS). The first firmware to run a BIOS sequence used a ROM chip, but now systems have switched to using flash memory for BIOS so data can be rewritten without the chip having to be removed from the system board and reinserted once it’s been reprogrammed.

Software contains important instructions and information computers need to operate. The two kinds of software, applications software and OS software, work differently and have different purposes. 

• Application software: Application software programs, also known as applications, are programs that perform a specific function, such as a web browser, photo editor or word processor. Application software can’t run on its own, however; it needs a computer’s OS (or systems software) to function. With the spread of the internet, many web applications require an internet connection to function, while noninternet applications can be launched by the computer’s OS (such as Windows, Mac or Linux).
• OS or system software: OS or system software is a layer of software that sits in-between hardware and application software, enabling both to function properly. Users hardly ever interact with system software, but it’s always on, running in the background, while they use their favorite applications. System software manages a device's hardware and software helping ensure that the users’ experience is smooth and uninterrupted.

Because so many businesses and customers rely on firmware and software, they are attractive targets for hackers. Hardware devices that rely on firmware have many vulnerabilities because they frequently use the same code. Software attacks, often referred to as “malware,” are malicious snippets of code or applications that can damage computers or help hackers steal sensitive data.

Both firmware and software hacking involve the deployment of code that’s been intentionally written to harm a computer’s system or user. Popular types of malware include ransomware that holds a user’s data hostage, trojan horses that evade detection by posing as a legitimate program, and spyware that steals sensitive information about a user. 

For example, in June of 2024, Google issued a warning that a problem with its Pixel firmware made it vulnerable to attackers and that there was no known fix for the problem².

There are many examples of firmware and software playing critical roles in the core operations of successful businesses. Here are five of the most common enterprise use cases. 

Personal computers (PCs) rely on firmware and software to function. Firmware embedded on a memory chip on a laptop’s system board helps the device retain critical data while its powered down. Additionally, BIOS and unified extensible firmware interfaces (UEFI) specifications underpin the software interface between an operating system and firmware. 

Examples of software applications that are critical to PCs include data processing programs, apps that enable internet browsing, apps behind video conferencing and more.

Firmware is built into the flash memory chips that many modern data storage devices such as USB drives, external hard disks and flash drives need to function. 

When it comes to data processing and data analytics, many popular solutions including Microsoft Excel, Google BigQuery and IBM’s Db2® database rely on software to work properly. 

Firmware ensures that a smartphone will boot up after you haven’t used it in a while and that critical components can interact with each other the way they were designed to. 

Software powers the many apps users interact with to check their email, place video calls, order a meal, check account balances and much more.

Cars designed in the last 10 years rely heavily on firmware and software. Different types of firmware are used across automotive systems, including engine control units (ECUs) that optimize engine performance and fuel efficiency. 

Software is behind computer-aided design (CAD) that helps in the design process, as well as many of the newer safety features including camera-assisted driving and lane-change warnings. 

The Internet of Things (IoT) refers to a network of physical devices, vehicles, appliances and other physical objects that are embedded with sensors, types of software, and network connectivity, allowing them to collect and share data. Firmware is essential to many IoT use cases, including smart home appliances such as refrigerators and smart climate control. 

Software underpins many of the more complex IoT applications, including driverless cars, smart cities applications, smart power applications and more.

While firmware and software share many similarities, businesses assessing the technologies for potential use need to be clear on their differences as well. Many hardware devices depend on firmware for core functions, including powering up and down and retaining data while switched off, and software is key to the user interaction and business application. Understanding how the two technologies work together, behind the scenes, to drive innovation is important to unleashing their business potential.