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It's important to note that this means that your code is instantaneously updated to the cloud with remote box SSH directly from your OS X machine, not that you can somehow virtualize your favorite text editor and use it to edit code from a browser.
What is this coded in, wouldn't it be possible to create a Linux or something version too?
Versions of the app for different OS's are in the pipeline
What advantage does this have over mounting a network file system (or whatever it's called)?
They've done a nice job of implementing seamless ssh and tunneling, and it is free to start with. Aside from that, not much.
well there's a file-system sync too, so you can edit code locally and it gets synced in real time with your cloud-based box. This enables you to use SublimeText, Textmate, MacVim or any OS X text editor but with your entire dev environment being hosted on the cloud.
Also things like full text search are super slow over ssh-fs since the network call is intense. Syncing the file system makes things super fast.
I assume one of the main benefits of cloud coding is that every developer has access to the same code and environment. How does this application handle multiple people working at once on the same code?

Also, why would somebody choose this over editing files locally and committing to github? People can do that in one click if they want.

We don't have support for multiple people working on the same code yet (at least with the Mac app).

But the benefit of editing locally and committing to Github is that that's not typically work flow - with Nitrous.IO for Mac - you can edit code, run tests (or refresh a page), make more edits, run tests again, repeat, and when you're done, then commit to a remote git repo (all with your dev environment being in the cloud, making it accessible from anywhere)