A virtual terminal is a device that does not have hardware associated with it. It forms a connection between your application and AS/400 applications, representing a physical work station (possibly on a remote system). The OS/400 licensed program manages the virtual terminal, which directs work station I/O performed by an AS/400 application to the virtual terminal. The virtual terminal APIs allow another AS/400 application, called a server program, to work with the data associated with the virtual terminal.
In a distributed systems environment, the requesting program is called a client; the answering program is called a server. The client and server programs may reside on the same AS/400 system or may be distributed between two different systems. The server program generally runs on behalf of (or in conjunction with) the client program. Together, the server program and the client program allow a work station to be supported as if the work station were connected locally, but is in fact a virtual terminal.