Distributed application

An application made up of distinct components in separate runtime environments, usually on different platforms connected via a network. Typical distributed applications are two-tier (client-server), three-tier (client-middleware-server), and multitier (Source: http://java.sun.com/j2ee/1.4/docs/glossary.html).

In Short, an application that runs on two or more networked computers is also known as Distributed Application.