Can someone explain what a 'Target Server' is in this instance. Also, what it means to "Target Multiple Servers"?
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A Target server allows the job to be run against a different server than the one it is defined on.
Multiple Target Servers allows you to define a job once (say a routine backup job) and have it execute against many servers (thus backing each of them up).
MSDN Documentation here: http://msdn.microsoft.com/en-us/library/ms180992.aspx
A target server is a specific location where data is stored, such as database, or a collection of databases.
A target can also be an application that provides data to be backed up.
Multiple Target Servers permit you to define a job who execute on many servers