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Business owners should familiarize themselves with technology terms to better understand the evolving tech sector and its role in their organization and industry.
Every field has unique terminology and jargon and the tech industry is no exception. It’s filled with acronyms, initialisms, software references and hardware terms that can feel like another language. Even if you’re not operating a tech company, you probably use technology in your business. Understanding common tech terms demystifies your business’s tech tools, expands your knowledge and helps you make informed decisions about new tech products or services.
We’ve outlined 100 tech terms entrepreneurs and small business owners should know and understand. These terms are organized by sector, although many apply across multiple areas.
The following terms apply to website hosting and management, which many business owners deal with daily.
The back end is everything behind the scenes — servers, databases or applications that make a webpage work. When developing an effective business website, these back-end elements affect what search engines see.
Dark web content is accessible only through the Tor browser. Users can’t find this content via conventional search engines. Each piece of data sent to an end-user terminal is bounced all around the world, making it impossible to ascertain who is viewing what. This is a slow data distribution method, but it’s highly secure.
A data center is a facility that houses computers and data storage systems, including servers. Internet server providers and large companies like Google and Amazon own many data centers. Data centers are protected with military-grade security and are usually not advertised externally to prevent cybercriminals from targeting them in a data breach.
The underpinnings of surface web content are housed in the deep web, such as the databases containing product stock lists and the infrastructure that allows social media content to be posted and viewed.
Downtime is the amount of time a website or server is not working — when users can’t access the specific website.
The term “end user” refers to the intended user of a company’s product, software application or website.
FTP is a network protocol used to transfer files from one host to another over a network by opening up two connections from each computer.
When you click on a webpage, you see its front end. It’s the look of the website from the user’s point of view and everything the user interacts with on the website.
HTML5 is the default programming language used worldwide for websites, video content, graphics and web applications. HTML5 was developed to a universally recognized standard, ensuring blanket compatibility and accessibility on almost any web-enabled device. It’s the fifth generation of the HyperText Markup Language (HTML), distributed using the HyperText Transfer Protocol (HTTP) across the World Wide Web.
ISPs are companies, such as cable companies, that provide users and businesses with internet access through different channels. The best business internet services can help users conduct web searches, research topics, connect with family or co-workers, shop online and more.
Linux is an open-source operating system (OS) that information technology (IT) personnel can install on web servers as an alternative to the more commonplace Microsoft Windows OS. Some businesses believe Linux is a more secure and reliable option and choose a web hosting service that runs Linux. Linux was used to develop the Chrome OS installed on Chromebook computers and also forms the basis of the Android smartphone OS.
Load balancing is the process of equally distributing network or application traffic across multiple servers. Load balancing ensures no single server becomes overloaded.
A web server presents website content by storing, processing and delivering webpages — including documents and pictures — to consumers.
Sandboxing means hermetically sealing a program or application away from everything else. The program or app has everything it needs to operate within the sandbox and does not need to draw on external resources. IT managers can use this setup for all sorts of experiments — even infecting the program or app with malware — without contaminating anything outside the sandbox.
Server hosting refers to rented space on a remote server or the use of a managed hosting service.
Servers support a company’s computer and internet networks and host all associated data, including email account data and website content. ISPs typically own servers and lease server space to customers while providing internet connectivity. Businesses without the in-house technical support necessary to maintain a server typically avail themselves of server hosting. Hosting services provide businesses with servers while conducting full-time technical support.
There are two kinds of hosting, depending on your small business budget: dedicated and shared hosting:
The term “surface web” applies to any publicly visible online content that users can find using search engines like Google and Bing.
Uptime is the amount of time a website or server is operational and accessible for users.
UI represents a user’s interaction with any form of technology, including websites, apps, computers, tablets, televisions, keyboards or a mouse.
WYSIWYG stands for “what you see is what you get.” This term is commonly used in relation to website-building tools, which automatically modify HTML5 code every time you add a new piece of content or move around a page element. Leading WYSIWYG editors include WordPress, Wix and Weebly — though platforms that don’t start with “W” are also available.
The following terms relate to the networks your company uses to transfer and interact with data.
An API helps different software components work together so that they appear to operate as a single piece of software. Such interfaces are very common, helping to coordinate numerous elements to make a program or app easy to use.
Bandwidth refers to the amount of data or information that can be transmitted over a connection during a specific period. It is often confused with internet speed, but bandwidth is not about how fast data is sent. It’s about the limit of how much data can be sent.
The CPU is your computer’s main processor, essentially acting as a control center. This hardware performs basic functions, including running operating systems and applications.
Data architecture is the management of all things data-related: how data is collected, transformed, stored, distributed, accessed and consumed.
Every domain name is translated into numbers as an internet protocol address when users enter it into a browser’s address bar. The DNS is a directory of those numbers.
Ethernet systems physically connect computers to a local area network, typically via a cable.
A firewall is a network security system that protects, monitors and controls incoming and outgoing network traffic. It can block specific networks that are unauthorized or dangerous.
Latency refers to the delay that occurs before a data transfer begins when users send data to other networks.
In reference to data and technology, a library is where prewritten text or code is stored online for programmers or users. It’s a data management system that helps users save time when creating something. They don’t have to start from scratch because the information is stored.
ML is the process of using algorithmic analysis to improve on previous performance. Siri, Apple’s artificial intelligence (AI) personal assistant, is an example of ML. Refining a general set of rules through regular use allows the algorithm to find an approximate solution instead of having a specific algorithm for each function.
NFC technology is short-range technology that allows users to communicate using magnetic field induction when they’re within a very short distance of each other. NFC mobile payments are a common usage of this technology.
Open-source code is available publicly for anyone to use. People can take open-source code and modify it for their purposes.
A router is a device that forwards data packets along networks to connect a business or personal computer to the internet.
A network has many different components, from security to navigation. A technology stack, or “tech stack,” describes the layering of those components, such as data management, logins and retention. A common example of a technology stack used for websites is LAMP, which stands for Linux (operating system), Apache (web server), MySQL (database) and PHP (programming language). Together, these technologies are the foundation of an effective, functioning website.
A VPN allows users to connect to a private network from anywhere for added security. When you set up a VPN, for instance, instead of using the public Wi-Fi network at a local coffee shop or hotel room, which comes with a heightened security risk, employees can connect to your encrypted private network with the same security as if they were in the office.
A web app is a webpage that looks and acts like an app on a smartphone or tablet. Web apps provide viewers with a familiar format and more intuitive navigation and are immediately mobile-friendly. They create a more consistent aesthetic than separate desktop websites and mobile apps.
The following terms relate to cloud technologies, a burgeoning industry that is rapidly becoming part of everyday business life.
AR is the process of displaying digital content over real-world infrastructure, usually relying on handheld devices like smartphones and tablets. The hugely popular Pokémon GO game was an early example of AR gaming, while home furnishing apps that superimpose sofas and chairs into your living room are a retail-driven example.
The blockchain is a decentralized ledger of activities and transactions. Whenever an activity takes place on the blockchain, a permanent record is created. This record can’t be modified or corrupted, although the parties involved in a transaction or activity may remain anonymous. Blockchain business uses include providing information for audits and helping with quality assurance.
With a cloud backup, also called an online backup, a business sends its data to the provider’s servers over the internet. Platforms like Microsoft OneDrive allow you to set cloud backups to occur automatically. Cloud backup services like Google Drive are affordable because the business doesn’t need to purchase additional hardware.
Cloud computing is a digital service that lets users access programs, data, documents and other information stored on remote servers via an internet connection. Cloud computing is an umbrella term for different cloud services.
Companies that don’t lease servers might pay to store data on virtual servers, a practice known as cloud hosting. Cloud-based servers are accessible only via an internet connection. Businesses typically access cloud-hosted servers through software interfaces specific to their cloud-hosting service providers.
Cloud migration is the process of moving data, applications or other business elements to a different cloud computing domain.
The blockchain was initially created to support transactions involving a cryptocurrency called bitcoin. Many more cryptocurrencies have since materialized. Cryptocurrencies have no underwriting bank or institution like traditional (fiat) currencies. A cryptocurrency is worth whatever the market deems it to be worth. Many cryptocurrencies have depreciated to zero or turned out to be scams, although well-established cryptos include bitcoin, ethereum, litecoin and binance.
DFS programs, such as Dropbox, can be installed on different platforms to share digital content, such as documents, images or videos.
“Metaverse” is an increasingly popular term for the digital worlds of social media, gaming and virtual communication. The metaverse allows people to interact and socialize in a computer-generated environment. In the future, there are likely to be competing metaverses, in the same way there are currently competing social media platforms and immersive gaming environments.
Building on AR principles, mixed reality allows real and digital objects to interact. MR encompasses everything from hand tracking to spatial mapping. AR is a subset of MR as are holographic displays and headsets. MR will power the metaverse.
Smart contracts are a key blockchain use. You can program smart contracts to ensure something happens once a particular step has been completed. Because the next step happens immediately, there are no delays. Because an immutable record of each action is generated, nobody can subsequently claim the contract wasn’t honored or seen through.
SaaS, also known as “software on demand,” is a way of delivering business software via the internet so a company doesn’t have to buy licenses and install software on specific devices. You’ll usually pay for SaaS solutions monthly or annually, making them more affordable than other software options. Many business management packages, including project management software, are now available in SaaS form.
The following terms relate to the systems and services businesses use to operate efficiently.
An algorithm is a set of instructions used to complete a task designed for a specific program. Algorithms are essential to computer programming to take inputs, process them systematically and provide outputs to accomplish various computational tasks.
Companies can use CAD software to make or modify design simulations before a product is manufactured. CAD software allows designers to create the item virtually and fix errors before anything goes into production, saving time and valuable resources.
Every website has a CMS to manage its content. CMS solutions usually include a web-based publishing feature that supports content editing and formatting without using a web coding language like HTML5. Many CMS solutions also feature one-to-one marketing tools that enable targeted advertising to help you better reach your target customer.
The database is the location in a computer system where all data is stored, organized, accessed, collected and used.
Larger companies may benefit from a distributed system to handle data and server requests. This system uses several network-connected computers to provide a service, compute data or accomplish tasks.
Document management refers to creating, sharing, organizing and storing documents within an organization. The best document management software includes self-hosted and cloud-based options to help you facilitate the document management process.
A hybrid app can be downloaded and accessed on different devices and operating systems. Amazon and Yelp are some examples of commonly used hybrid apps. (See “native apps” for context.)
Businesses use an LMS to train employees. Such systems help human resources (HR) departments plan, implement and assess new hire training plans and other training processes. LMS software usually includes video conferencing, discussion forums and other interactive features.
The term “managed services” refers to outsourced services. Businesses can outsource many day-to-day activities to cut costs and increase corporate efficiency. HR outsourcing and IT managed services are two examples.
Merchant accounts are agreements with banking institutions required before a business can accept credit cards and other payment forms. In exchange for converting credit card payments into cash, banks charge merchants an interchange fee and potentially other fees.
A native app is an application developed for a specific operating system. For example, iOS is only available for Apple products.
OOP is a programming model that arranges software according to data or objects rather than logic or functions. For example, JavaScript and Scala can be used as OOP systems.
An RDMS is a program that organizes information into tables, indexes or other data structures while maintaining data integrity. Examples include MySQL, Microsoft SQL Server and Oracle Database.
Version control prevents people from overwriting their colleagues’ work while keeping historical data intact so you can backtrack and see how a task was accomplished. Version control allows for progress on multiple fronts when teams work together on systems. Access to older versions may also support better troubleshooting.
VM refers to software that allows computers to run their own program or operating system on different computers that aren’t typically equipped with that specific OS or application. For example, VM allows users to operate macOS on a PC or a Windows program on a MacBook.
The following terms relate to the software your business uses daily.
A breadcrumb, or breadcrumb trail, is a series of links a user follows to navigate through a website and arrive on their desired page. A breadcrumb helps users be aware of their location. It may look something like this: BND > Technology Terms > Breadcrumb.
When a software error prevents a software application or website from properly working, it means there’s a “bug.” Small bugs can cause minor damage, such as frozen computer screens, while larger bugs can have unintended consequences on connected devices or software.
When a website gets a bug, companies tend to resolve the code error with the help of bug tracking software. Bug tracking involves capturing, reporting and managing data on software bugs that affect the online platform.
BI is the information a business collects about itself. Given the broad swathes of data currently being generated, business intelligence software lets companies keep all their BI data in one place, making this data easier to access and analyze. Businesses can obtain insights to benefit future operations.
Many businesses make contracts with customers, vendors and employees. Contract management software helps everyone keep track of all aspects of a contract, such as initial negotiations and monthly billings.
Cookies are digital information a server stores and sends to a web browser. They may also be referred to as browser cookies, web cookies or internet cookies. Marketers use this mechanism to track customer browsing behavior.
Some businesses require tailor-made software for their daily operations. Instead of using mass-produced software packages, these businesses use custom software development. Software development companies or in-house software development groups create applications for the company’s exclusive use.
CRM refers to a business collecting and managing data about its clients. Companies use the best CRM software to track client data gathered from service calls, previous purchases and more. These insights help businesses close future deals and grow relationships with customers.
DevOps is a practice that combines software development (Dev) and IT operations (Ops) to improve software development collaboration. It aims to make the development process more efficient so that software is more dependable for everyone once it’s launched.
To embed something means to host content from another location, such as text, images, videos or audio on a webpage. Many websites offer an embed option.
Computer encryption helps prevent hackers or unauthorized personnel from gaining access to private information. With this form of data security, only authorized users with a digital password can access the encrypted file for information.
ERP software allows a company to manage various aspects of its business, such as accounting, inventory and HR, in one place. Companies purchase the enterprise software modules relevant to their business and use the ERP software to view all the data collected by these modules uniformly.
Framework is a program used to develop software applications by making the process quicker and easier because the components are all in one place. The term “framework” can also be a code library or a different component to develop software applications.
An IDE is a software application that provides tests, debuggers, code editors and build automation tools to computer programmers for software development. Some examples of IDE programs are Eclipse, Visual Studio and VIM.
HR professionals often rely on performance management software to track employee performance. This software can organize and analyze large amounts of data more efficiently and help managers develop performance management plans for team members.
When developers want to create new software, they often rely on an SDK. This collection of software development tools and programs, including libraries, documentation and APIs, allows for more streamlined app development.
A user persona is a framework that allows businesses to generate theoretical user profiles to create their ideal target audience. Businesses craft user personas based on specific marketing demographics, research and analysis to cater to their services. User personas may also be referred to as “buyer personas” and “customer personas.”
The following tech terms are integral to business marketing.
A business can use A/B testing to release two pieces of online content to two test groups and see which version receives the most engagement. The content might include a marketing email, blog post or webpage design. This testing helps narrow down marketing and advertising avenues, predicting which option will be more successful with the general public. The results shape future design choices and marketing and sales campaigns.
Affiliate marketing is a performance-based marketing system where businesses reward affiliates for each customer they bring in through the affiliate’s marketing efforts, such as advertisements, sponsorships or affiliate links. They are typically people outside the organization who may receive payments or discounts based on the number of consumers they accumulate. Social media influencers often participate in affiliate marketing.
Similar to traffic, bounce rate measures the number of people who visit a business’s website but leave almost immediately. This can also include users who visit the website but hardly look around and don’t click or fill anything out. Bounce rate can also refer to undeliverable emails.
A chatbot is an algorithm that identifies keywords in user input strings and attempts to select the most relevant answer from a database of preloaded responses. For instance, a chatbot that sees the words “when” and “open” might display a list of opening times. Chatbots use ML to improve their performance and direct dissatisfied customers to a human operator if they cannot resolve an issue.
CTR is the percentage of users who click on an advertisement, page or marketing email instead of viewing it. CTR measures the success rate of having consumers click on the desired page to drive more engagement.
Content curation is the process of selecting external content to share online, so it’s critical to refresh and revise your content to stay relevant. Redrafting content also meets search engine algorithm specifications for higher ratings.
CRO is the process of increasing the percentage of users who perform a desired action on a website. Businesses want to increase sales from the number of users who visit their website, so they create opportunities for further engagement. An example of CRO could include a pop-up window that requests a customer’s email address so they can receive discounts or newsletters.
Email marketing is the promotion of products and services via email. Businesses can create emails that include images, videos and other content that customers will be more likely to view than plain text messages. Many businesses use the best email marketing software to manage and automate distribution lists, campaigns and analytics.
Tracking audience engagement involves knowing how many people use your online resources and how often they interact with your social media efforts. The more engaged your audience is on social media or a website, the more you know your message resonates with them.
Growth hacking is when a company wants to grow its audience and uses analytics and product development technology to increase clicks and customers. This process is also called growth marketing.
An impression occurs each time someone sees a piece of content or social media advertisement. It doesn’t mean the user will click on it because it’s just there being viewed.
Some software and online services measure marketing activities and campaign success through marketing automation tools, such as emails, social media, reporting, analytics and customer relationship management. Social media posts can be input and scheduled for release, with data on response rates and interactions collected to measure effectiveness.
Microblogging is a short-form blog post that is direct and quickly gets the point across. Posts on Facebook and X (formerly Twitter) are examples of microblogging content. These posts can include audio, images and video in addition to text-based posts.
When a startup team tries to get its company off the ground, it will often create an MVP. An MVP is the simplest functional iteration of a product — a working first draft that developers can improve upon later. An MVP’s purpose is to collect validated feedback on the product to extract the most benefit from the minimum amount of development and effort.
When a company uses multiple forms of communication to engage with users and potential customers, that’s multichannel marketing in action. Businesses can use social media, website banners, advertisements, emails or blogs simultaneously to market their products or services.
In marketing, the term “organic” refers to content individuals have viewed because they came to it through their natural (organic) keyword searches instead of click-through advertising.
Retargeting is a form of online advertising that targets users who have previously visited a website or engaged with a business’s content. Through different digital marketing tools, businesses encourage users to return to their site in the hopes that they’ll make a purchase. Email retargeting efforts are a common tactic.
SEM refers to companies paying to increase their visibility and ranking on search engines. This can include product listings or video clips on Google, Bing, Yahoo or Firefox.
SEO refers to the process of optimizing a website to rank higher in search engine results. Businesses use specific keywords throughout their websites to prioritize their links in the search engine, making the website easily findable and accessible.
Website traffic refers to the number of users who visit a website. They don’t have to click on anything or purchase a product; simply visiting the webpage counts toward your website traffic.
UGC is brand-specific, customer-created online social media content. It can include reviews, testimonials, brand updates, videos or images.
In the fast-paced world of business, staying current on technology terms is essential. Whether you’re managing your website, leveraging cloud technologies or optimizing your marketing strategies, an understanding of tech jargon empowers you to make more informed decisions.
This knowledge streamlines operations and helps position your business to harness cutting-edge innovations, ultimately driving growth and competitiveness. By familiarizing yourself with these key terms, you can navigate the tech landscape with confidence, ensuring your business remains at the forefront of industry trends.
Amanda Clark contributed to this article.