Someone expressed his requirements to open pdf files in browsers in the same way as excel files opens up when we use excel services.  Although the settings was to open the file in web browser in advanced settings of the document library it was opening in the client application.  Hence here are the steps to get this done:

  1. Open the document library where you have stored the .pdf file.
  2. Go to the advanced settings and make sure that you have selected "Open in web browser" and not in client application.
  3. Login to Central Administrator--> Application management --> Web Application general settings and select your web application.
  4. Then select your web applicaion --> general settings and change browser file handling to Permissive from strict as shown below
  5. Click on OK and here you go.