A translation memory (TM) is a database that stores "segments", which can be sentences, paragraphs or sentence-like units (headings, titles or elements in a list) that have previously been translated, in order to aid human translators. The translation memory stores the source text and its corresponding translation in language pairs called “translation units”. Individual words are handled by terminology bases and are not within the domain of TM.

• Desktop: Desktop translation memory tools are typically what individual translators use to complete translations. They are programs that a freelance translator downloads and installs on his/her desktop computer.
• Server-based or Centralised: Centralized translation memory systems store TM on a central server. They work together with desktop TM and can increase TM match rates by 30-60% more than the TM leverage attained by desktop TM alone. They export prebuilt "translation kits" or "t-kits" to desktop TM tools. A t-kit contains content to be translated pre-segmented on the central server and a subset of the TM containing all applicable TM matches. Centralized TM is usually part of a globalization management system (GMS), which may also include a centralized terminology database (or glossary), a workflow engine, cost estimation, and other tools.
• Cloud-based Software as a Service TM solution: The translation data is hosted on the cloud and the platform is accessible via a web browser.