Imagine an everyday computer which could do nearly everything because it has very nice hardware. Now imagine removing the software aspect by routing the machine to work through a server to store and share files and more. This is called a thin client and it is a special type of computer that connects through a server to have access to the operating system and more.
This option cuts down on the cost of the computer while providing a way to still get better hardware for the machine which will perform well even with heavy strain. This type of computer will primarily be used in a business-type setting, where there will be many computers running off of a single server (or multiple servers).
Thin clients can perform very well and make it possible to lose less data if a computer indeed crashes. This allows the computer to be easily replaced or repaired without the loss of data for employees which could simply log back into their specific settings through a new computer. Everything is hosted on the server, files and all. This solution is very good and can even be extended outside of the business setting through a connection through to the server.
It is a very important option for companies that need a powerful system which can be upgraded easily and without loss of data. Regular backups of data are possible through secondary servers and on physical media if needed for extra precautionary measures.
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