Hardware means that it's stuck. If you get electrocuted or short-circuited or reprogrammed, then you're done. No coming back. Your body can be repaired, but your mind has to start from scratch.
Software means the tech containing your knowledge/experience/personality can be removed. Your personality and other program settings can be copied to numerous CDs, and you can basically live forever, by maintaining tune-ups to your robotic form, getting upgrades as needed, etc. Even if your body gets destroyed, you can be revived if you have a personality/memory/experience CD reserved.
“…Judge not what a man has done, but judge what he could have done if he was a different bloke altogether. For art thou a leper? And a leper can changeth his spots…” --Rudy Wade, Misfits (Series 4, Episode 8)