The Okos Hub requires a constant power source in order to communicate with the cloud. The Hub can be connected via Ethernet or via Wi-Fi.
Some of the processing that has previously existed in the cloud, like for certain Automations and device types, automatically occurs locally in the Hub. Some automations driven by Zigbee or Z-Wave devices will no longer have to make that round trip from the device, to the Hub, up to the cloud, and back.