In simple words HP UFT (UNIFIED FUNCTIONAL TESTING) is a functional and regression automation testing tool for automating software applications and environments.
UFT unifies/integrates two automation tools as a single tool.
UFT = HP QTP ( Quick Test Professional) + HP ST ( Service Test)
Earlier HP - ST was sold separately by HP. The purpose of Service Test is for testing Service Oriented Architecture ( SOA) applications and support functional test areas like
1) WSDL based web Services
2) RESTful Web Services
3) Java Classes
4) Customizable C# custom events
5) Extensible