Your computer needs storage because the processor needs a place to perform its magic — a scratchpad for mad doodles, if you will. All computers need storage. On a modern computer, storage comes in two forms: temporary and long-term:
Temporary storage: Supplied as memory, or RAM. Memory is where the processor does its work, where programs run, and where information is stored while it’s being worked on.
RAM is the microprocessor’s playground, its workshop, its den.
Long-term storage: Provided by storage media. Storage media includes disk drives, flash drives, media cards, and CDs and DVDs. Long-term storage allows information to be saved and recalled for later use — like putting clothes in a closet or all your junk in a storage unit. Media storage is the place where things go when the microprocessor isn’t directly working on them — but from where stuff can be retrieved later, if need be.
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Source:http://www.dummies.com/how-to/content/computer-storage.html
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