LiveCD and LiveUSB run on vCPE on a RAM disk that resides on the host system. The system uses the RAM disk for writeable sections of the file system and uses an external system, such as a TFTP server or USB memory stick, for the storage of configuration files.

LiveCD and LiveUSB can run on a device that has an existing operating system. The previously installed operating system is not disturbed or changed when you use LiveCD or LiveUSB. The configuration is not stored on the system, but you can save it to a persistent device, such as a USB memory stick. In addition, you cannot upgrade an installation from LiveCD or LiveUSB; each upgrade requires a new instance. While you are running the system from LiveCD or LiveUSB, you are not able to access other applications or programs on your system.

LiveCD and LiveUSB is also required to install vCPE to a persistent device, such as a hard disk. As a method of deployment, running from LiveCD and LiveUSB is best suited for evaluation and test scenarios.