The VFS will be in the next ownCloud release, 2.5.0.
A statement from the company said that the main change was that a system would now display the file folder structure on the desktop as it existed on the server, but did not download all the data as in the past.
The user would now be able to download only the files that he/she really needed on a local device, while still having a complete overview of the files on the client, which are visualised, but not downloaded).
The virtual filesystem aims to integrate ownCloud with familiar desktop workflows, so that the user can concentrate solely on essential tasks.
In future versions, for example, users will be able to perform file operations, such as moving, deleting or renaming files, and also share data with other users more conveniently from the file browser and without having to manually synchronise data from the server.
Users will also be able to change the synchronisation status of a file. It will soon be as easy as making data available on demand; local storage space will intuitively be freed up by transferring corresponding files to the cloud via the context menu.
There are detailed instructions at this link for anyone who wants to try out the VFS in a test version of the desktop client.
Screenshots: courtesy ownCloud