The term upgrade refers to the replacement of a product with a newer version of that same product, however, it is most often used in computing and consumer electronics, generally meaning a replacement of hardware, software or firmware with a newer or better version, in order to bring the system up to date or to improve its characteristics. The word is also used by audiophiles to describe the replacement of a product with a better quality product with the aim of bringing enhancements to sound quality.

Computing and Consumer Electronics

Common hardware upgrades are installing additional memory (RAM), adding larger hard disks, replacing microprocessor cards or graphics cards, and installing new versions of software, although many other upgrades are often possible as well.

Common software upgrades include changing the version of an operating system, office suite, anti-virus program, or various other tools.

Common firmware upgrades include the updating of the iPod control menus, the XBox 360 dashboard, or the non-volatile flash memory that contains the embedded operating system for consumer electronics.

Software and firmware upgrades are often downloaded from the Internet. Often the download is a patch—it does not contain the new version of the software in its entirety, just the changes that need to be made. Software patches usually aim to improve functionality or solve problems with security. Rushed patches have been known to cause more harm then good and are therefore sometimes regarded with scepticism for a short time after release (see "Risks"). Patches are generally free.

A software or firmware upgrade can be major or minor and the release version is increased accordingly. A major upgrade will change the version number, whereas the minor will usually follow with a ".01", ".02", ".03", etc. For example, version 10.03 means that that is the third minor upgrade of version 10. The minor upgrades (or updates) are generally free, but the major versions must be purchased. See also: sidegrade.

When you make an upgrade of the same product from one company to the other, you are making a competitive upgrade.

Risks

Although upgrades are for the purpose of improving a product, there are risks involved—including the possibility that the upgrade will worsen the product.

When hardware is upgraded, there is a risk that it will not be compatible with other pieces of hardware in the system. For example, an upgrade of RAM may not be compatible with existing RAM in the computer. Other hardware components may not be compatible after either an upgrade or downgrade, due to the non-availability of compatible drivers for the hardware with a specific operating system. Conversely, there is the same risk of non-compatibility when software is upgraded or downgraded for previously functioning hardware to no longer function.