The V2 hub is a hybrid system, with most activities running in the cloud but a few eligible to run locally as well if the Internet is not available. It’s complicated, but The following should help cover the details:
Continuing the discussion from What's the deal with Nest? :
Correct.
I was answering this question below in the global sense. i.e., There will always be the possibility of various benefits available to Official Device Handlers and SmartApps that are not available to un-certified Community Developed ones. At the moment, the local processing benefit is inapplicable to Nest in either case.
I’m not sure ST has guaranteed that community developed SmartApps/Device Types will be included in local processing right after certification. Yes, it may be included down the road, and this is not yet clear on how or what the process is to enable community developed stuffs to run locally.
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