Functionality
Without a significant amount of memory, a computer would merely be able to perform fixed operations and immediately output the result. It would have to be reconfigured to change its behavior. This is acceptable for devices such as desk calculators, digital signal processors, and other specialised devices. Von Neumann machines differ in having a memory in which they store their operating instructions and data. Such computers are more versatile in that they do not need to have their hardware reconfigured for each new program, but can simply be reprogrammed with new in-memory instructions; they also tend to be simpler to design, in that a relatively simple processor may keep state between successive computations to build up complex procedural results. Most modern computers are von Neumann machines.
Read more about this topic: External Memory Algorithms