First, mapped drives that redirect everything the user thinks they are putting onto their hard drive is stored on the servers in Personal Folders. Standard Government practice in the US Department of State.
Secondly, many users are finding their entire desktop is only a platform to allow their User Profile to boot from a virtual server - so nothing actually resides on the desktop. As virtual servers become more widespread, this technology is also being implemented just because of the Security and Complete Control it allows both System's Administrators and those who perform as Information Systems Officers and Security Officers; the Network Admins also love it because it is difficult to hack or damage virtual servers or disrupt the networks - everything is running on a different machine from the one with the IP address.
Team Obama was stupid to Diss the Systems Administrators and Systems Security Officers.