Embodiments of the present invention are directed to a networked software and service dispensing vending machine (also referred to as a "software ATM") for dispensing software and providing services to a portable computer system. Software stored on the software ATM is offered for sale and, once payment is received, downloaded into a portable computer system. A communications interface on the software ATM allows communications with the portable computer system. The software can be displayed on the software ATM prior to being purchased. Once payment is received for the software, it is downloaded into the portable computer system using the communications interface. A network connection on the software ATM provides communications with a network server.