In a typical personal computer setup, all the components, including CPU, monitor, keyboard, and mouse, or physically close together. This not the case in set-ups where powerful CPUs are located in server rooms and users may be in a different room or different geographic location. A terminal connects the user to the servers through a network.
Terminals can have different levels of intelligence. At the lower end, a terminal may be a direct connection to a server, and every keyboard and monitor signal is simply mirrored between the server and the terminal. More sophisticated terminals have some processing capabilities themselves which will make certain operations, such as graphical user interface displays more efficient.

