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A Possible Future of Linux - Online Live Environments?

Some months ago I casually signed up for a beta program online that seemed to mix cloud computing with Linux distributions. This program being SUSE Studio. I was impressed by the concept and I took it for a brief whirl. It is quite powerful and apart from adding packages from the regular openSUSE repositories of the latest stable release version, you can add/remove your own repos. Furthermore, you can customize the artwork and share this custom distribution with the world. You can watch this video to see how to use SUSE Studio to build a custom Linux distribution based on openSUSE.

After a while, SUSE Studio got me thinking. What if the future of building Linux distributions for the casual user could be based on an application like this? Now I fully understand that SUSE Studio is backed by Novell and hence no ordinary unpaid manpower has gone into the development of this application. I'm not entirely sure how easy it would be to start such a project from scratch so I won't go there. Of course, this doesn't mean something like this can't be considered. I'm sure a lot of people consider creating their own Linux distribution just for fun and to get their hands dirty. Those more serious about it would look to target a certain audience - casual new users or music enthusiasts, for example. So instead of going about with Linux From Scratch or basing your distribution on Ubuntu, I think the 'daring developer' in you should tempt you to try building something like SUSE Studio.

So how would you, the creator of such an application for generating Linux distributions go about it?

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