Video Terminal, (also called a dumb terminal) neither the computing power of the terminal machine nor software used with it are located in the actual terminal, but rather in an application server of sorts. The terminals and application servers communicate to each other over any type of network device.

Here are some of the advantages of using multiple terminals and one uber powerful application server.
- Updates must only be applied to one machine instead of many
- Less users on the network means more computing resources can be devoted the current user(s)

Some of the disadvantages:
- If the host breaks, the terminals are temporarily useless
- During updates to the host, terminals may become useless (or less useful)