How does ArcGIS Server provide services to clients?

ArcGIS Server provides services to clients primarily through web-based interactions. This means that clients can access geospatial data and associated services via the internet or internal networks using web protocols. This setup allows for efficient distribution of maps, spatial analysis, and geospatial functionalities, which can be utilized by various client applications or web services. By offering services over the web, ArcGIS Server enables a wider reach and flexibility for users to access, query, and manipulate geospatial data remotely, supporting various applications such as web mapping and geographic information system (GIS) tools.

The other options do not align with how ArcGIS Server operates. Hardware encryption, while important for security, does not relate to the method of providing services. Local network connections are a subset of how services might be accessed but do not encompass the full capability or intent of ArcGIS Server, which is designed primarily for web-based service delivery. Sharing physical copies of data is not feasible in the context of dynamic geospatial services, which rely on real-time access and interaction with data rather than static, physical datasets. Therefore, delivering services over the web with geospatial data is the most accurate depiction of how ArcGIS Server operates.