App is an abbreviated form of the word "application." An application is a software program that's designed to perform a specific function directly for the user or, in some cases, for another application program.
a self-contained program or piece of software designed to fulfil a particular purpose; an application, especially as downloaded by a user to a mobile device.
The word "app" is a more modern usage, but this is really the same thing as a program.
Google refers to their online services as apps, but they also sell a specific suite of services known as Google Apps and have an application hosting service called Google App Engine.
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