Web and Windows applications are fundamentally different and neither are better than the other, rather they would be suited/geared towards certain scenarios.
The basic design on a web application is that the application sits on a web server, and all users will access it via a web browser over the internet/HTTP. What this means is that configuration and deployment is limited only to the web server, so management is much easier. Being a web based application, it can reach many users who have access to the web and a compatible web browser, there fore the reach of the application is wide and is mobile. Some disadvantages are bandwidth and richness of the application.
Windows applications on the other hand are installed on the users machine. This will mean the application is much richer and more responsive than a web application having much more higher performance. However maintenance would be much harder with patching and rollout/installations. etc CLient PC's may also require some sort of initial configuration to get things working so configuration management can be a nightmare as well.
So pretty much, the advantages or web based applications are mobility, ease of access, distribution, configuration management and maintenance. Where it lacks is richness, performance compared to winforms application.
Source: http://forums.asp.net/t/1257645.aspx, http://forums.asp.net/t/1323737.aspx
~ Gangadhar Kotu
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