This setup is often ideal for setting up servers, routers, and other systems that rarely or never need input or output execept through the network. If you have a spare machine and a network, turn it into a web server, application server, file server, print server, and a compute server, without tying up scarce monitors and keyboards.
Linux can even be set up to boot off the network, reading and using files from another machine. Such a diskless workstation can be used as a full graphical terminal, running any application available on the network. This is a nearly ideal NC, or Network Computer.