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Web applications are custom programs running from a "web server," which can be publicly accessible, over the Internet, or accessible only to a restricted audience on an internal network.
Advantages of web applications include low distribution cost and ease of deployment.
You are also always using the latest version of a web application, since it runs directly from the source, unlike traditional "desktop applications," like Word or PhotoShop.
The shortcomings of web applications are the restricted "security model" in which they operate: a web application cannot interact with local files, except indirectly or in a limited manner.
Development time of web applications sometimes stretches because of the occasionally inconsistent way in which browsers display information.