The idea of portable application has been around since the introduction of Macro media programming. But the problem is that Microsoft decided to purchase the whole "idea" of application over the web by buying the copyright.
Google has managed to launch web-apps for documents and spreadsheet but it's taking a long time to catch on with end users. I have been promoting my business partners to get used to the idea of using web-apps but old habits are hard to break, I suppose.
I saw portableapps.com just the other day and it really intrigued me. But the limitation is still at my end--if I forget to install portable application(s) to my USB or flash drive I am still without the application(s) that I require. I believe web-apps is still the best approach for the future.
Whether it's web-apps or portableapps, as we face even greater broadband speed and wider coverage of wi-fi, carrying around clunky and heavy laptop will phase out. And instead, it will be replaced with minimum storage space with fast processor, foldable wide screen and wi-fi connection also known as "hand-top" (that's right Trap17 members, I am coining this phrase and you saw it here first!) computer will only require internet access to bring everything to my finger tips. I can lease programs per usage or per period basis over the web and use programs that I only require without buying into huge license fee.
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