yes, it means Software.Some of the tools/Software are of great help & that makes life easier

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OracleXpress : for using lightweight oracle database on your machine during development phase.
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Eclipse Plugin for Hibernate code generation etc.
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StarUML for Design.
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Continumm for Build process.
-we may not be aware of all such tool & plugins which helps in each phase of software development, so sharing that will be helpful.