A command or program that makes a connection to a special host computer. The host requires a login name and password for you to utilize its resources. Your computer is also demoted to a dumb terminal. That means that your CPU is next to meaningless and your monitor can only display what the host allows. In other words, you are no longer using your own computer. You are running whatever the host has been designed to offer you.
The advantage of this type of connection is that the host may possess a lot more processing power and software than you have on your own machine. It's a little bit like being able to drive a bigger car without needing to buy and maintain it.
Anti-Microsoft entities see this "concept" as a way to combat the software giant, by offering the public, dumb terminals for $200 and let them use (e.i. rent) the provider's host computer. The advantage is that you don't need a personal computer with lots of speed, memory, or a hard drive, because this resides on the host. Additionally, you don't need to upgrade to a faster computer with fancier "bells & lights" every two years, because the power and software resides on the host.
The disadvantage of this concept is that you have a "dumb terminal" which cannot store anything you see, because it lacks a hard drive, memory, and controller boards. If you start building these options back into the home unit, you've defeated the whole purpose.