Microsoft reduces GPS chip power consumption with the cloud

I love to watch the batter on my phone go down when I turn on GPS.  MS apparently has figured out a way to reduce this power consumption by off-loading some of the work into the “cloud”.  This confuses me, since If I have a phone with GPS, in order for it to “offload” to the cloud for more CPU horsepower, I would need a network connection (3G, WLAN, etc)…which would use power and perhaps data plan bandwidth..  So I am kindof wondering what exactly am I saving?


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