Web based software or online software resides on the software provider's file servers instead of on your computer hard drive as with traditional software. Online software is used within an Internet browser like Firefox or Internet Explorer.

Most online application software stores data on secure file servers owned or rented by the software company and not on your hard drive or local file servers.

Among the advantages of using online application software is that since no software is installed on your computer, you avoid problems that can occur when you install or update software. Another advantage is if you can use the most popular web browsers on your computer, you can used online application software since it runs independent of the OS, particularly with Windows.