It's a virtual desktop that lives in the cloud. You can log into it from any computer, and work with documents stored there, without needing to have them on any hard drive.
They've just opened up for beta (I vaguely recall putting my name on the list to be notified when they did), so I signed up. It looks pretty slick, in a completely familiar desktop way. Everything is exactly where you'd think it was on a default desktop setup, so it's easy to figure out how to start using it, and there's an option to start developing your own applications.
It appears to be a bit glitchy yet. Documents (which can be saved in Word or Text format) occasionally don't reopen or save properly, it can be slow or unresponsive, etc.
Slowness will probably be just one of the issues of keeping your documents in the ether instead of on your computer. Of course, if they're on your computer, and your hard drive crashes, you're equally out of luck. Maybe they should be everywhere, just to ensure that good old redundant backup.
Personally, I like to keep copies of everything I have on my work computer, my home computer, my backup hard drive, my Google docs account, and in hardcopy in my basement and my backup storage facility.
Because my sugar cookie recipes and collection development notes are crucial.
Anyhow, I'll give Cloudo a shot or two to see what it's like. My main question right now: can I change the wallpaper? I like the picture that's there fine, but one wants to tinker and personalize.
We'll see how it goes.
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