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It's about fast workspaces for IDEs based on Theia. Theia is fast per se, fast here means fast workspace launch times with massive scalability.
Take a single instance Theia environment that works on an individuals server. How can that be served to a mass market with super quick start up?
Eclipse solves a superset of the problem but suffers from start up that is too slow. Gitpod is a close source service that serves workspaces and it does this in a performant way. Both Che and Gitpod leverage Kubernetes for scale.
Theia Cloud is a light weight workspace management capability the marries: Theia, an OAUTH2 based authentication and authorisation capability, and Kubernetes.
The result is highly scalable Theia based IDEs each IDE type underpinned by a Kubernetes service wth readied pods.