Microsoft may be working on its own cloud-based desktop service according to sources speaking with ZDNet’s Mary Jo Foley. The rumored service codenamed “Mohoro” would build the Windows desktop SaaS (Software as a Service) solution on top of the company’s Windows Azure cloud computing platform. With Mohoro, Microsoft would provide Azure virtual machines running the Windows operating system. Users would then be able to remote into the desktop on any Internet connected computer or mobile device (with remote desktop support) and get access to their own desktop and applications.

The Windows desktop… coming soon to a cloud near you?

Windows Azure users can already run virtual machines with Linux or Windows OSes, but in the case of Windows Microsoft only allows server versions to be run. Incensing restrictions prevent users from loading consumer operating systems such as Windows XP, 7 or 8 onto the virtual machines. The rumored Mohoro service would apparently relax the licensing restrictions and allow businesses or consumers to deploy client operating systems running on the Azure VMs. It would basically take the need for enterprises to run their own hardware and move it to “the cloud” behind a Microsoft-run subscription service.

It is an interesting idea that I could see universities and businesses looking into. The Azure platform is actually pretty good, from what little testing I've done on it. However, I think that for many consumers a local install is preferable. Although syncing applications and files can be a pain if you have multiple machines, you retain control of your data and are not bound to needing an always-on Internet connection to access that data and run applications. Further, latency issues and bandwidth caps with home Internet connections make a paid-for Azure desktop less appealing to home users. I think Microsoft would have a hard-enough time selling users a subsciption for a local/traditional Windows installation, much less a subscription for an OS requiring an always-on Internet connection to use their computer.

Would you use an Azure-powered desktop as your main OS?