System software is a set of programs designed to operate, control, and maintain the computer hardware. It acts as a mediator between the computer hardware and application software. System software includes the operating system, device drivers, firmware and utilities. Application software, on the other hand, is a set of programs designed to perform specific tasks for the user, such as word processing, spreadsheet management, graphic designing, etc. It is designed to use the hardware and operating system services to fulfill specific user needs. The main difference is that system software manages the computer system, while application software performs specific tasks for the user.