What is it? Sort of a virtual PC. It allows you access to a server, where you can then either redirect to a PC or run applications such as MS Office or anything else, without actually having to have a PC.
Advantages
For most Small or Medium size businesses, none. Remote
access to your work IT systems can be an advantage. Many enterprise
size companies use Terminal Services for remote access as it is
reasonably easy to setup and doesn't require a VPN. If you have a pile
of old PC's, don't want to upgrade them all and they won't run the
applications you need, you can setup a Terminal Server and let everyone
just connect to the server and run Windows XP actually on the server,
but it appears on their PC's as if they are running it there. Generally
this is not a price competitive option by the time you take in the
cost of setting it up and support, but it can be done and depends on
how the applications themselves are licensed, as some are licensed on
the number of people actually using them at any one time.
For larger organisations, Citrix XenApp can be a viable option. This is like Terminal Services on steroids, but you have to pay extra for it and in most cases, it's not worth it.