Service packs are Windows product updates that extend and update your computer's functionality. Service packs include updates, system administration tools, drivers, and additional components, which are conveniently packaged together for easy downloading. Service packs are cumulative -- each new service pack contains all the fixes in previous service packs, plus any new fixes.
A hotfix, on the other hand, is an interim update that usually addresses a specific bug or security vulnerability. All hotfixes offered during a service pack's lifetime are rolled up into the subsequent service pack.
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