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Web applications are so prolific because the strength of the web is also its weakness. The original intent of the web was to be a lightweight information distribution system: a simple and platform-neutral way (any OS, any hardware) to post documents on a server and retrieve them as easily.
This advantage of centralized deployment (figure 1.1) inherited by dynamic pages (such as web applications) provides such a strategic value in both a business (such as ROI) and development perspective that it makes the thought of developing old-school desktop applications difficult to justify.