About Direct Uploads
Normally, with Media Cloud activated and working, uploads go to WordPress first and then Media Cloud will upload to cloud storage. When you enable Direct Uploads, those uploads will now skip WordPress completely, and are sent straight to your cloud storage provider.
For most upload types this works great, but when uploading images you will need to be using Imgix or Dynamic Images. The reason being is that because your WordPress server never handles an upload, no additional image sizes will be generated from your images – a function that WordPress normally handles. With Imgix and Dynamic Images, those additional image sizes are generated on the fly on an as-needed basis.
For Videos, direct uploads will not generate additional metadata that you may or may not need. However, if you install FFProbe on your server, Media Cloud will generate this additional metadata after the upload to cloud storage is complete.