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I feel like this will be limited to game saves, profile settings, and small data items.
I doubt they'll let you store a full game on the cloud. I'm thinking that if you want a game on the cloud it will work similarly to Steam. In that the game isn't stored on your personal cloud, but that you can download the game anywhere if you happen to already own the license.
But who knows... maybe they will. That'd be an insane amount of bandwidth they'd have to deal with though.
cloud gaming has always been an interesting concept but until avg. speeds from ISPs are alot better than they are currently I just don't see it being feasible unless you are paying for higher speed tiers. I am using a 50 Mb line and can hit 7-8 MBs downloading something on steam but I wouldn't want to stream a game on the cloud. From what I have seen currently 720p is the best companies have messed with as far as streaming, So unless that has changed in the last 6 months I just don't see it.
Now for unlimited cloud space I would assume it would work like Steam also. All game saves, profiles, ect would be saved to the cloud but full games that might be down the road if the Xbox One has the same shelf life as the Xbox 360 then in a few years it might be.
The amount of spin Microsoft is spouting about the cloud is amazing. Your downloadable games are already in the "cloud"! Your downloadable movies are already in the "cloud"! Your downloadable music is already in the "cloud"! Absolutely nothing said in that PR drivel is new or revolutionary. Keep on spinning MS! Seriously how did redownloading your digital purchases because thats how digital distribution works become "unlimited storage space in the cloud"? and why are people lining up to congratulate them on new PR/Marketing garbage? Great they've removed the gold requirement for some things but they don't get very specific about what things are actually included, they just use broad generic terms instead! Good times! WIll you be able to upload your retail purchases to the cloud(doubtful)? Unlimited video storage(unlikely)? Unlimited game save storage(probably locked behind gold)? Who knows!? Why give details when you can spin everything in to the amazingness of the cloud!!!!!! Not like they'd want to give details anyways because you know you might become informed and not buy this load of marketing crap.
I used to be a big Microsoft fan. I disregarded the failure that is Windows Vista and stayed loyal to them. I accepted Windows 7 as a magnificent OS and I was a long time Xbox 360 gamer. Now with Windows 8, they've ruined everything. And they continue to ruin things with the Xbox One. I've become a Sony convert now, staying away from Microsoft wherever I can. I will stick with Windows 7 and when the time comes that it isn't supported anymore, I'll probably go to Apple or Linux to avoid their future monstrosities. You can say I'm overreacting but I've lost much of my trust for Microsoft. They've gone completely anti-consumer.