Lifthrasil: It means, at least in the meaning some marketing people defined it, that the Games of the Future (TM) will not be installed at all on the hard-disk of the player any more, but will only run on the servers of the publisher. Players will have to log in and stream the game, even for single player. In that way it will be impossible to pirate the game (until someone leaks the server installation...) and the publisher will have full control over their customers and full access to all their data.
It doesn't matter for me if a game client is installed locally or not. The difference is that the game is controlled by the server and you cannot run it without contact to the server. Although some marketing folks try to sell us the bright new future with a thin client and everything else running server side I already would count all the present MMO and browser games to this category.