TelnetClient example

I'm trying to educate myself, not just brush things off as not important and overlook such examples. Why does this example have me specify both ip and server?

That's good

/ Enter a MAC address and IP address for your controller below.
// The IP address will be dependent on your local network:
byte mac[] = {  
  0xDE, 0xAD, 0xBE, 0xEF, 0xFE, 0xED };
IPAddress ip(192,168,1,177);

firtst two comment lines explaining the purpose of IP and Mac. Actually first you need to understand what is telnet?