Microsoft is preparing to launch Windows 11 into the Cloud

The move toward a cloud-based operating system is also accompanied by Microsoft's increased investment in custom silicon partnerships, fueling the development of its ARM-powered Surface Pro X devices. There's ongoing speculation that Microsoft could be designing its own ARM-based processors and AI chips, further enhancing the performance of its cloud-based services.

The cloud's immense potential isn't new to Microsoft. Its cloud-based successes are evident in services such as Xbox Cloud Gaming and Microsoft Office. Extending this successful model to Windows aligns with Microsoft's broader market push in recent years. The transformation could redefine the concept of "software as a service," paving the way for a full operating system accessible on-demand, streamed to screens that require minimal hardware.

However, this ambitious plan isn't without its challenges. While corporate customers are financially capable of securing a reliable, high-quality connection, such certainty doesn't exist for consumers, even in developed nations. The prospect of losing full computer capability when moving away from a robust broadband connection could be a deterrent for some potential users.

Nevertheless, Microsoft seems undeterred, pressing forward with its cloud-based vision. The company recently announced Windows Copilot, an AI-powered assistant that summarizes, rewrites, and explains content within apps. The tool is a part of Microsoft's broader AI push for Windows, emphasizing the company's commitment to leveraging AI to reinvent how consumers use Windows.

Coincidentally, Microsoft's move into the cloud, especially in cloud gaming, is part of the reason why regulators, like the UK's CMA, are against its acquisition of Activision Blizzard.