There is another service that will be offered, called Gaikai that will unofficially compete against OnLive. The major difference is that OnLive has no subscription fee. Although the company says that due to different business models, the two are technically not competing. However, among gamers, a comparison is bound to be made.
Gaikai lets players buy a game for unlimited streaming, download it, or get it shipped. At any rate, the target could be to encourage a player to buy one of the three versions of a license for the game. This means that Gaikai must assume that some players will not prefer streaming and own their own console or PC in the long run.
Gaikai also differs in its bandwidth power. While OnLive has 5 datacenters, Gaikai has 300, plus 900 extra servers. OnLive uses a proprietary technology to make bandwidth more efficient, while Gaikai has no mention of anything as specific. Since no apples to apples comparisons are out yet, we just have to wait and see.
source: Shacknews