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Buying clients to use with terminal services

We use terminal services & from my understanding, users don't need great PCs since all applications are on the server, correct?  When we've purchased new computers, we've been getting OptiPlex PCs from Dell for $800+.  Is there a reason for doing that?  Couldn't we just get a $500 home user-type desktop?  
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Pber
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Yes as long as it can run the terminal server client you should be good.  I've run clients 300Mhz machines and it's as fast as can be.

You could also look into thin clients:http://h10010.www1.hp.com/wwpc/us/en/sm/WF05a/12454-12454-321959-338927-89307-3221863.html

They usually have no moving parts and never die or need patching/upgrades.
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This is helpful - thanks.  I've been in my position for <1 year &  had never heard of TS until I came here (no, not a whole lot of experience here).  When we bought the last few computers, we bought the OptiPlex because that's what we've been doing & I simply didn't know any better.  I'll look at CDW too.  Dell was supposedly giving us a nonprofit discount, but I don't see much of a price difference compared to just buying online like anyone else.
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I guess I just haven't been impressed with our account team at Dell - maybe I need to push them a little harder on pricing.  We're a nonprofit foundation with 14 people.  We have software specialized for nonprofits & are big users of Msft Office - all thru TS.  There are a few people who have software on their own system only (Contribute, Quicken, etc...) but I don't know if anyone has more than 1 or 2 packages.  We are big fans of TechSoup.  We do pretty well with software purchases, but have some limitations.  For ex., with Msft, we can only buy once a year so we need to plan pretty well.  I think their PCs are pretty old but maybe I need to take a closer look.
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