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A Microsoft Article about what Terminal Server is. This is part of the advanced Window Server programs and allows remote offices to run a database located in your main office.

 

Terminal Server


Terminal Server is a piece of software which transfers processing from the workstation to the server. A branch office would sign into the central office's computer and enter cases though a WAN or the Internet. To the workstation, it would look like the program was running on the workstation, while in fact it is actually running on the server. Only keystrokes are sent to the server and only screen updates are returned to the workstation. This reduces the bandwidth or speed needed to connect the offices together.

  Windows-based Terminal (with Microsoft Windows Terminal Server). Provides the ultimate thin client-all of the processing and storage occurs at the server. A Windows-based Terminal is typically a sub $500 device running the Independent Computing Architecture (ICA) or Remote Desktop Protocol (RDP) stored in ROM. Lowers TCO by as much as 37 percent.
  Personal Computer (with Microsoft Windows Terminal Server). Provides the benefits of centralized computing and the benefits of a low-cost intelligent client with local processing capability. This machine can run all of its applications locally, or run some applications locally (such as Microsoft Office) and some applications remotely from a Windows Terminal Server (such as a frequently updated line of business application). PCs being used as thin clients typically retail for under $1000 and offer additional flexibility that Windows-based Terminals do not provide.
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