Basically - instead of downloading or installing from a CD (with the usual upgrade issues and dilemmas, software is starting to move to the cloud. This means it is accessed through a web browser (Chrome, safari, firefox, IE) and the program loads in the web page and does not require anything to be installed on the computer.
Benefits ?
Access from any device, getting rid of software upgrades, lots of freely available software, storing data on the cloud (removing backup issues) - flexibility. Importantly, software updates are delivered automatically each time you navigate to the web app.
Some of my favorites:
Google Docs - Free. Documents, Mail, Calendar. Start by creating a gmail account to reserve your login. This will then open up all the other google web apps for you to use. Securely create your docs, spreadsheets, presentations, store photos with picassa, collaborate with chat & video conference with hangouts. It's a no brainer.
Google Apps - Free for up to 10 users. All of the above for business use. More security (two step verification of logins), a web app store for third party (free / paid) applications, extensions and add ons. Add storage space with google drive (5gb free, google docs are free and extra 20gb is £2.50/user/month)
Prezi - Free basic use (if your work is public). Ditch the powerpoint and get zooming around your presentations. Include images & video, with professional slide transitions - wake up your audience.
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