Dashboard Local Vs Cloud Detection

Might be a dumb question, but how does the dashboard determine whether to use the local or cloud?

Example, my local network is 192.168.1.something. So if my phone is on that network the dashboard is connected locally. Go to my friends house. His network is also 192.168.1.something. I connect to his wifi. Does the app think I am on my local network in this case or does it use some other means?

Just curious mainly.