Product - Many companies can use it irrespective of domain -
 eg. Microsoft Office.

Project - This is custom made for a specific company in a 
specific domain, by taking the comapanies requirements.

6.	User Acceptance Testing:
                                                         
After completion of system testing and bugs resolving, the
project management is concentrating on User Acceptance
Testing to collect feedback from Real Customers (or) Model
customers. There are two ways to conduct User Acceptance
Testing.

Alpha Testing			                     Beta Testing

 
By Real Customers				By Model Customers
In our development site				In Model customers site
For Software applications 				For Software products

After Completion of user acceptance testing and their
modifications, project management is concentrating on
software release and maintenance.

project--Placing the order before manufacturing process

project--placing the order after manufacturing process

project means specific custumer requirements. For example we
take trinethra super market application. it is a application.
product means overall requirements in the market it is a
readymade tool.anybody can use this product but application
only use who give the requirements from client.

Product:
	Product is a company that releases Hardware, Middleware,
Operating system, Languages, Tools etc are becomes the
product. They develop the products for global clients i.e.
there are no specific clients for them. Here the
requirements are gathered from market and analyze that with
some experts and start to develop the product. After
developing the products they try to market it as a solution.
Here the end users are more than one. Product development is
never ending process and customization is possible.

Project:
	Project is finding solution to a particular problem to a
particular client. It depends on the product. By using the
products like Hardware, Middleware, Operating system,
Languages and Tools only we will develop a project. Here the
requirements are gathered from the client and analyze with
that client and start to develop the project. Here the end
user is one.

project: is developed for client of our company, (the end 
users )

Product: is developed for the compny itseld for its own 
bussinesss

Example: 
Products: google products --> gmail, orkut
Projects: ICICI bank netbanking application done by 3i 
infotech, or E Seva done by xyz company

ML babu

Project or Application: One client point of view if we are 
designing any software it is called project.
  ex: subiksha 


Product : Global client point of view if we are designing 
any software it is called product.
  ex: Ms-word.

It should be Software Project and Software Product. 

Software Project is done for a specific clients of your 
company. For this some of the testing may be done at 
client's side. For example, Acceptance Testing.. 

Software Product is not done for a single client and it is 
released as a product of the company.

===
 Software Product Development is being proactive and
 Software Application Development is being reactive. 
In both cases you will be addressing a specific need for 
sure. 
For an application there is already a client / need that 
has been given to you and you react to it - under the 
constraints and environment that is assigned. For product 
development you understand that developing such a product 
will meet a specific need - you typically don't restrict to 
hardware/software constraints or environment. The need you 
are addressing with a product predominantly is a latent 
need and hence is less customized unlike an application 
where Customization takes the driver's seat.

The End result of the project is the product.