Java Web Start allows developers to deploy Swing desktop applications over the web. It works by packaging the application code and resources into JAR files along with a deployment descriptor (JNLP file). When end users access the JNLP file through a web browser, Java Web Start automatically installs and launches the application similar to a desktop program. This allows Zhara Tech to develop their POS application as a rich client using Java/Swing but deploy it via a web application for centralized updates and management. They faced challenges around database synchronization and logging which they overcame through custom servlets and configuration.