Applets provide a rich experience on the client side and there are many things they can do that an AJAX application cannot do, such as custom data streaming, graphic manipulation, threading, and advanced GUIs. While DHTML with the use of AJAX has been able to push the boundaries on what you can do on the client, there are some things that it just cannot do. The reason AJAX is so popular is that it only requires functionality built into the browser (namely DHTML and AJAX capabilities). The user does not need to download and/or configure plugins. It is easy to incrementally update functionality and know that that functionality will readily available, and there are not any complicated deployment issues. That said, AJAX-based functionality does need to take browser differences into consideration. This is why we recommend using a JavaScript library such as Dojo which abstracts browser differences. So the "bottom line" is: If you are creating advanced UIs where you need more advanced features on the client where you want UI accuracy down to the pixel, to do complex computations on the client, use specialized networking techniques, and where you know that the applet plugin is available for your target audience, applets are the way to go. AJAX/DHTML works well for applications where you know the users are using the latest generation of browsers, where DHTML/AJAX "good enough" for you, and where your developers have JavaScript/DHTML/AJAX skills.