The OnLive company offers PC gamers a subscription based access to a virtualized session hosted in the cloud, a virtual storage space which allows people to have access anytime anywhere to a virtual hard-disk storing GBs of movies, games, pictures, documents, applications etc. This allows users to play games with graphics which outrun their PCs hardware specifications. OnLive first brought its revolutionary technology for Apple’s iPhone devices in late 2009, following a massive success.

Starting January 2012, OnLive developed a desktop application which “delivered an instant-response Windows desktop and full-featured Microsoft Office apps to your iPad.” For only $4.99 per month, you’ll get the OnLive Desktop Plus, which includes Adobe Flash and a fast Web browser, all of which are stored in the “cloud” and delivered to clients via WiFi or fast mobile networks.

However, OnLive was in trouble. Regarding the partnership with Microsoft, Joe Matz, Microsoft’s Corporate Vice President of Worldwide Licensing and Pricing released a blog post, saying there are still some proper licensing matters that need to be taken care of. “Some inquiries about these scenarios have been raised as a result of recent media coverage related to OnLive’s Desktop and Desktop Plus services,” said Matz. However, now OnLive has received proper licensing credits, as well as the green light from Microsoft to use Windows 7 in its application, without further violation of Microsoft licensing terms.

In this regard, Microsoft said misunderstandings regarding the licensing agreements with OnLive have now been resolved.