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System configuration is a term in systems engineering that defines the computer hardware, the processes as well as the various devices that comprise the entire system and its boundaries. This term also refers to the settings or the hardware-software arrangement and how each device and software or process interact with each other based on a system settings file created automatically by the system or defined by the user.
System configuration mainly refers to the specification of a given computer system, from its hardware components to the software and various processes that are run within that system. It refers to what types and models of devices are installed and what specific software is being used to run the various parts of the computer system. By extension, system configuration also refers to the specific operating system settings that have been set by default automatically or manually by a given program or the user.
A computer system, particularly the operating system, dictates a set of default settings and configuration when the system first comes online. These settings dictate the normal function and features that make the system run in a stable manner. To this end, operating systems have their own configuration utilities to allow administrators or users to change the configuration of the system. For Microsoft Windows, this is called the Microsoft System Configuration Utility or "msconfig."