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The "traditional" software meaning is a limited isolated environment where applications can be run without risk to the rest of the computer or network. I think the term originated with Java - regardless it is now generic.
In anti-virus programs the sandbox environment is used as a closed container within which an operating system emulation runs suspect executables looking for changes which might indicate a virus.
Barry Schwarz (SEORoundTable) termed the phenomenon of Google ranking newly listed sites well for several weeks and then dropping them drastically or completely the "sandbox effect" where they get to play in a sandbox away from the real sites. Probably derived from previous.
Ono a point of order though, I was always under the impression that Toolman first coined the term in the Supporters Forum. I shall check.
[added]
Yep, this post [webmasterworld.com] in the Supporters Forum dated Apr 15 2004 seems to predate all aother discussion I can find online by at least 10 days.
Onya
Woz
However, ot knowing who toolman really is (under that multi-coloured body stocking boldly emblazoned with a T) I can only refer to all the Google results (web news/articles) referencing Mr. Schwarz as the sandbox (in the Google sense) originator.
If they are one and the same - shame on you for outing him. It is not nice to reveal toolman's secret identity.
If they are not the same and the web is wrong then we must take up keyboards and take firm keystokes against historical misrepresentation.
Playing in a sandbox is so childish ... I love it.
The reason you won't find any reference to the above thread on the web is that it is in the supporters forum which does not get indexed. Toolman is the first though to use the term and/or discuss the effect online as far as I am aware.
No big deal I suppose.
Onya
Woz
<added> Found an article predating toolman's WW post by several months HERE [oyster-web.co.uk]. Guess toolman wasn't first with the term afterall.</added>