and partly by the same crew. Eric Schmidt (CEO Google) was at the time (mid 90s) at Sun Microsystems running JavaSoft producing the JavaOS (an embedded OS) that ran Java Applications. Though the OS was embedded in the JavaStation unit in Flash Memory, all applications and data were hosted "in the cloud."
The concept was called a "Network Computer." No disk, just a Network Connection.
Others tried as well, but none succeeded. It's arguable that the main barriers to success were lack of network bandwidth and a lack of applications. Today, with high speed internet highly available, and a the success of the "apps" model driven by the smart phone market, that such a device probably has a better chance of success.
One key element that might just get in the way, though, is that unlike the moble phone market where network and apps ADD new capability in a growing market, a Network Computer, is REPLACING capability in a mature market (and asks the user community release control of something it has had all along (for better or worse)... its private data.