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Microsoft wants to move Windows fully to the cloud
(www.theverge.com)
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Lots of people missing the point here.
What if you had a tablet device that could go weeks without charging? It could handle basic tasks on its own, or more intensive tasks when connected to the internet?
Office 365 is a good example. Basic tasks of word can be handled by a cached web client, but if you need to do something more advanced and need the full version of word to run, the ARM architecture can’t run it so spin up a virtual instance and stream it to your arm device.
Windows 11 will have this baked in. It’s not a forced replacement of a local OS.
But you don't need to host your local OS in the cloud to run an application in the cloud.
Edit: clarification.
If your hardware is ARM and you need to work in x86 then yes you do.