Capacity increases from floppy drives to CD-ROMs to hard disks to tapes. Communications Always faster but never enough. Networks can exchange data at fantastic rates. Programs or software tell computers what to do. Software is the part of a computer system which doesn't break when you drop it.
Software is now a bigger business than hardware.
The key distinction is between programs and data. Programs tell what is to be done. Data is what the programs run on. Input devices - keyboard and mouse. Secondary storage device - floppy and hard disks.