Computer systems are typically classified as:
1. microcomputers  
2. midrange computers  
3. mainframe computers

Microcomputer Systems
Microcomputers are the smallest but most important category of computers systems for end users. They are also referred to as personal computers (or PC's). The computing power of current microcomputers exceeds that of the mainframe computers of previous generations at a fraction of their cost. They have become powerful professional workstations for use by end users in businesses and other organizations.

Microcomputers categorized by size   
handheld    home    Personal Digital Assitants
notebook    personal    Telecommunications Network Servers
laptop    professional    
portable    workstation    
desktop/floor-standing    multiuser    
 
Single-user computers
Support the work activities of a variety of end users.
 
Workstation computers
Support applications requiring heavy mathematical computing and graphics display demands (CAD, investment and portfolio analysis in the securities industry).

Network Servers
Support computing by several end users at multiple terminals, such as network servers that coordinate processing in the local area networks (LANs) of microcomputers and other devices. This is the fastest growing microcomputer application category. They are usually more powerful microcomputers that coordinate telecommunications and resource sharing in local area networks (LANs) of interconnected microcomputers and other computer system devices.

Midrange Computer Systems
1. Midrange computers (minicomputers) are general purpose computers that are larger and more powerful than most microcomputers but are smaller and less powerful than most large mainframes.
2. Cost less to buy and maintain than mainframe computers.
3. Can function in ordinary operating environments (do not need air conditioning or electrical wiring).
4. Smaller models of minicomputers do not need a staff of specialists to operate them.

Midrange Computer Applications
1. Used for a large number of business and scientific applications (scientific research, instrumentation systems, engineering analysis, and industrial process monitoring and control)
2. Serve as industrial process-control and manufacturing plant computers, and they play a major role in computer-aided manufacturing (CAM), and computer-aided design (CAD) applications.
3. Used as front-end computers to help mainframe computers control data communications networks and large numbers of data entry terminals.
4. Are popular as powerful network servers in department, offices, and work sites.

Mainframe Computer Systems
1. Are large, powerful computers that are physically larger and more powerful than micros and minis.
2. Usually have one or more central processors with faster instruction processing speeds (MIPS).
3. Have large primary storage capacities.
4. Can support more input/output and secondary storage devices.
5. Can support hundreds of users concurrently.
6. Cost more to buy and maintain than mini computers.
7. Most mainframe computers need to operate in special environments (air conditioning and special wiring)
8. Professionals are required to operate them.

Applications
1. Handle the information processing needs of government agencies and business organizations with many employees and customers
2. Handle enormous and complex computational problems.
3. Act as host computers for distributed processing networks that include smaller computers. Used in National and International computing networks.

Supercomputer Systems
Are a special category of extremely powerful mainframe computer systems specifically designed for high-speed numeric computation; Cray Research, NEC, Fujitsu.

Applications
1. Government agencies
2. Military defense systems
3. National weather forecasting agencies
4. Large time-sharing networks
5. Major corporations.

source: Business Computing

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