Thin Client Technology or Server Based Computing enables any computer to access Microsoft Windows based applications and Unix based applications, like Wordprocessors, Spreadsheets, Accounting programs, ETC... From any Web Browser over the Internet or a Corporate Intranet. Without having to install the application on every desktop system.

The Applications actually Live and Run on Microsoft Terminal Services Servers not on desktop systems:

In Thin Client Computing, applications are installed on MS Terminal Services Servers in a central computer room. All application proccessing is performed on the Terminal Services Server and not the desktop system. This means that only the screen, keyboard and mouse information are passed to the client desktop system. As if you were remote controlling a Windows session on the Microsoft Terminal Services Server.

That is Thin Client computing in a nutshell.

Load Balancing: To add to this powerfull technology model, applications can be load balanced across multiple servers, commonly called a Server Farm. In this load balanced model, Citrix Preseantation server is installed on Microsoft Terminal Services Servers, Thus increasing overall perfomance by distributing the client sessions evenly across multiple servers. At the same time providing exceptional fault tolerance. Load balancing is an included feature of Citrix Presentation Server. Microsoft also provides a session load balancing feature called sessions directory. Click Here to find out more about Session Directory and Load Balancing Using Terminal Server.

What can Thin Client computing do for me or my company.

Lower Total Cost of Ownership:
Your company will save money, reducing support and hardware costs, while providing access anytime anywhere to your companies applications. No more upgrading company desktop systems every 2 years. Use your existing desktop systems and/or migrate to Thin Client Terminals. The cost of these devices are much lower than full blown desktop PC's.

But don't just take my word for it, check out the ACE Cost Analyzer and plug your actual numbers in and get a real bottom line cost savings.

Here is a great article that explains thin client technology in grater detail.

How Terminal Services Works