an improved component or replacement item, usually applied to technologyWith my phone company, I get a free upgrade every twelve months if I keep topping up 10 pounds a month.
Verb
to improve, usually applied to technology, generally by complete replacement of one or more components
to replace an existing object with something betterI had to upgrade my anti-virus software to protect my computer from the newer threats.
(computing) to replace a program with a later version of itself, a version having a higher version number or marketed under a more recent product name