Web-based software is software you use over the internet with a web browser. You don't have to install anything, download any software, or worry about upgrades.
Web-based applications have a number of advantages over traditional desktop apps, most prominently their portability. With web-based apps, users don’t have to install additional software, and developers don’t have to write multiple versions of the same application for different operating systems.
If you use an online bank or web-based email program like Gmail, Hotmail, or Yahoo Mail, you're already using web-based software.
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