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Well its not that bad an idea. I've already pretty much dumped any local email clients in favour of the webbased gmail and hotmail.
), with the exception of important data like passwords, accout numbers...
I think I could definitely see more stuff moving online...but I think it will definitely be how they develop it. I personally would love all my user info to be stored online (securely of course
The software itself could run much like java applets do today. Where you download the applet on your computer (possible cache it), and then run it with the security permissions you want. Should work just the same for MS .NET applications...
The hardest part will be managing security properly. I would definitely want my web word processor to be able to edit my files...but not some new program I'm testing out.
Also hopefully the apps still work offline like if the net goes down, or your on your laptop somewhere...
All to be seen.