Lr CC stores original photos in the cloud but also the develop settings. So everything is available everywhere and it is possible to revert to an original photo e.g. as it was first imported from camera without any adjustments.
Customers have no need to worry about a catalog or file/folder based organizational systems. Lr CC has its own cache and images are intelligently managed on devices in order to use the smallest footprint.
Import and upload to the cloud will obviously depend on individual connection speeds but Adobe is looking at the possibility of using a customer LAN, although this would be a future enhancement, when technically possible.
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The people who have HUGE photo libraries are not Lightroom CC's target audience, at least at this time, because they generally need local storage (cost of cloud storage) and want more advanced features. The primary audience right now are the mass of mobile-first photographers and those who want to edit their photos in an interface that doesn't require extensive learning. That will no doubt expand over time, but nothing happens overnight.
Thank you Victoria - for the answer that I already new as correct but was looking for anyone who agrees.
The reason I asked the question is to make a point to a growing number of posts here from people who want to use Lr CC as a massive library backup system. A LOT if them post here with 'sync' problems.
Your 'primary audience' sentence is spot on. If Lr CC users understood that going in a lot of the frustration with 'sync' issues would fade! Reading that sentence should be mandatory reading before posting here - IMHO
I've got 600GB plus in the cloud and it's running fine, but yes, there have been lots of misunderstandings around this launch, including a lot of people who should still be Classic users trying to move over too early. I'm sure it'll come in time, but internet speeds will be the major limitation for a lot of people for some time to come IMHO.
And if we think bandwidth is an issue now - and we do - imagine video.
We currently consider HD (1920x1080) good video. Then we have 2K (rarely used) and 4K/UHD (the same but not quite) and 5K.
Now 8K (7680x4320) (33 + megapixels) is on the horizon. Dell has an 8K monitor for $4999. and Apple is working on one. But just imagine the bandwidth that will be needed.
Sync issues with Lr Mobile were probably also one of the reasons why Adobe introduced their Cloud Storage solution to Lightroom in the first place.
However, I imagine they underestimated the amount of customers wanting to use Classic and CC together, leading to an even more complex workflow.