.NET is a comprehensive software development framework that includes a common language runtime (CLR) and a framework class library, facilitating the programming of applications in various languages. It addresses key software challenges such as interoperability, security, and installation complexity while supporting both managed and unmanaged code. The document also outlines essential components like ASP.NET for web services and ADO.NET for data access, as well as programming concepts such as assemblies and the common type system.