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Originally Posted by Brian
I agree that with a fast enough connection and ubiquitous connectivity, both online and offline storage will probably come into play. Something along the lines of Apple's .Mac accounts.
With such a device and connectivity to a mouse/keyboard/monitor or a "host" computer like IBM's Soul Pad, it would become your primary computing device, and give a whole new meaning to the "Palm Desktop". All of your most important files, applications, and data would be accessible locally on the device or in your own personal "vault" online.
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This is exactly where I think he's headed, shifting any and everything that can be shifted from the desktop/laptop to "...your own personal 'vault' online". Now think of the possibilities: 1) ability to back-up device online 2) ability to sync calendar online.
I think the device will have a few gig but I think he will provide a hosted online repository for virtually unlimited storage, for a fee of course. I think the device will be able to download and install software w/o syncing; thus, creating a device that has no dependence on the desktop at all.