This distinction is largely a hangover left from the days where analogue video (and editing systems) ruled the roost.
This distinction is largely a hangover left from the days where analogue video (and editing systems) ruled the roost. The distinction between online and offline editing was largely understood to mean the difference between a rough cut (or fine rough cut) and the finished version of a piece of video.
Offline suites typically used cheaper equipment, which made them cheaper to hire.
In the early days of non-linear editing, the concept of an "online" edit suite was preserved by the cost of the computer hardware needed to manipulate digital video at lower levels of compression.