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2. Some scenarios

A Linux workstation is running an X server as well as all the applications (word processor, web browser). It operates the same way a normal desktop computer does.

A Linux computer running only the X server and relying completly on other Linux computers to run the applications, is called an X terminal. Because its task is simplified a lot, a much less capable machine handles that easily.

A Linux computer runing applications for X terminals is called an application server.

Note that these are only conventions. Nothing prevent an application server from being another type of server (file server, web server, ...) or from running an X server to display on its own screen.

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