systemd is a suite of basic building blocks for a Linux system. It provides a system and service manager that runs as PID 1 and starts the rest of the system. systemd provides aggressive parallelization capabilities, uses socket and D-Bus activation for starting services, offers on-demand starting of daemons, keeps track of processes using Linux control groups, maintains mount and automount points, and implements an elaborate transactional dependency-based service control logic. systemdsupports SysV and LSB init scripts and works as a replacement for sysvinit. Other parts include a logging daemon, utilities to control basic system configuration like the hostname, date, locale, maintain a list of logged-in users and running containers and virtual machines, system accounts, runtime directories and settings, and daemons to manage simple network configuration, network time synchronization, log forwarding, and name resolution. See Lennart's blog story for a longer introduction, and the three status updates since then. Also see the Wikipedia article. If you are wondering whether systemd is for you, please have a look at this comparison of init systems by one of the creators of systemd.