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What is Web Desktop?
A web desktop or webtop is a network application system for integrating web applications into a web based work space. It is a virtual desktop on the web, running in a web browser as software.

Web desktops often are characterized by an environment similar to that of Windows, Mac, or Linux, but are now considered to have much more functionality being dependent on the internet. Typical benefits include the ability to save work and settings over the internet rather than to the local desktop.

History
The term Webtop was first introduced by the Santa Cruz Operation (SCO) in 1993 for a web-based interface to their UNIX operating system. Andy Bovingdon and Ronald Record, who both explored the concepts in different directions, are often credited as the inventors.[citation needed] The concept and technology originated from early commercial use of web server technology by SCO (SCO was the first OS vendor to include a web server), their X.desktop product line (obtained when they acquired IXI Limited in the UK, which was the first to have icons for URLs and an HTML-based help system) and the later Tarantella remote desktop technology which allowed real UNIX and Windows applications to be displayed within a web browser through the use of Java to form a true web based desktop or Webtop.

Nivio then took a full windows desktop with full user ability to installs applications on demand on a monthly rental and put it online with an offline device as well if the user never had a physical machine; the Nivio Platform was the first Desktop-over-IP that allowed users to actually be able to move from the traditional PC model.

Webtop versus Desktop
Advantages
1. Access to a personalized desktop from any internet enabled device on any
platform.
2. No need to install applications.
3. Application sharing among users located at different remote locations.

Drawbacks
1. Security: Due to the fact that all data is tranferred over the internet, it might be possible that a hacker intercepts the connection and reads data. Although with the use of https 256 bit encryption, this can be easily safe-guarded.
2. High speed internet: When using a web based desktop, the whole code used for visualisation (.js/.css files, flash player files, etc.) needs to be transferred to the local computer, so that it can be displayed.

Source of above article: wikipedia