Microsoft had claimed that OnLive Desktop violates Microsoft's software licensing terms, with regard to offering Windows 7 desktops on hosted servers. OnLive Desktop is somewhat akin to VDI (virtual desktop integration). That is, OnLive Desktop delivers a Windows desktop experience via the cloud. OnLive Desktop also delivers the Microsoft Office desktop experience out to iPads and Google Android tablets.
Back on March 8, a Microsoft blog claimed:
"We are actively engaged with OnLive with the hope of bringing them into a properly licensed scenario, and we are committed to seeing this issue is resolved."