Embroidery software tools, whether for hand embroidery or machine embroidery, fall into three main categories: editing, designing, and cataloging, although there is some overlap. Machine embroidery software packages frequently include data management functions too, to help you find and use your designs more easily. No standard exists for where options are included in embroidery software suites, so make sure to check the entire package from each manufacturer to be sure you are getting features you need.
You can find more detailed information about the tools to look for in each of the categories here:
Creating New Designs (Digitizing)
Cataloging and Data Management