Answer Description
Hardware and software encryptions do essentially the same thing, but a Hardware Security Module (HSM) will allow a server to function much faster, improving response time and allowing for stronger encryptions.
Wikipedia
A hardware security module (HSM) is a physical computing device that safeguards and manages digital keys, performs encryption and decryption functions for digital signatures, strong authentication and other cryptographic functions These modules traditionally come in the form of a plug-in card or an external device that attaches directly to a computer or network server A hardware security module contains one or more secure cryptoprocessor chips
Hardware_security_module - Wikipedia, the free encyclopedia