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Yes, it can. Because technology is changing very rapidly and users including Organizations are adopting latest technologies including mobility etc. So based on industry sector and application usage Microsoft Surface Pro may replace the traditional desktops.
Impossible to replace the classical Desktop PCs. Desktop PCs let the employees feel they are in a real work environment, comparing with the Surface Pro
A Surface Tab may replace a desktop for business users but for power or high end graphics users its still a very basic config.
Also the Storgage & RAM are integrated so hence it cant be upgraded as well.
But still keeping the portability in mind id go definately go for it.