OnLive fell afoul of Microsoft’s good graces as a result of hosting Windows 7 online and offering it virtually as a service for mobile devices like the Apple iPad. OnLive offered the service at a very reasonable monthly rate, but unfortunately that rate didn’t include properly licensing the OS from Microsoft.
OnLive was apparently not discouraged by the turn of events, though. Ars Technica reports that OnLive has switched to using Windows Server to host its online virtual desktops, and that it now believes it is in compliance with Microsoft licensing.
Microsoft is allegedly examining the setup to confirm compliance. There is no word about whether or not the shift in business plan will come with a rate hike for customers.