App streaming as used here does mean running the app on the server, taking the frame buffer output, H.264 encoding it and sending the "app stream" to the client where it is decoded. User events (keys, touch, game controller) flow back from the client to the server. As far as latency, in an key driven app (i.e. a STB remote control), the app seems local when latency is <125ms and for a 3D game app, latency should be <75ms. In the Netzyn implementation, basically the only contributor to latency is the network and both of these latency requirements are easily met for this type of used case with servers in just one or two data centers. Also the H.264 frames are only sent when there are changes, so average bandwidth for a STB Guide app is generally <100Kbs, but will have instantaneous peaks of a few Mbits.
Steve
Netzyn, Inc