It's basically a 'content store' that provides a supposedly nice interface for people to create all sorts of content and then it exposes that content back to you via an API that you can use in other places such as a CMS.
Good idea in theory, hard to execute because there is no common interface/standard.
If there was a common interface/standard you could use/build services like this to essentially decouple your content/data from the skin on top.
For example you could just pull the plug on CMS X, and 'connect' your content to CMS Y if it has a better user experience.
Easier said than done.