application streaming
One of the original shortfalls of server based computing was that it is highly reliant on a high speed, low latency network. One way around this is to allow the client device some processing power. The ability to install applications is not an option because that immediately negates the advantages of the Thin Client model. However, allowing the client device to have some graphics processing capability, for example, can be very useful. So for web browsing, some client devices have an onboard video player (like Microsoft Media Player) meaning the task of playing back a video can happen on the client device. It is also possible to "Stream" applications, like our MS Word example, where some of the processing can happen at the client. So not all Thin Clients are equal. In fact they range from Thin to Tubby- depending on how the infrastructure as a whole is designed.
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Wikipedia: application streaming
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