What exactly is the 'Waiting for response' msg on Firebug's Net tab?

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As sou can see from the screenshot most of the time spent is waiting for a server response (thats the purple coloured area).

What exactly is that server response time? Is the server too slow? Is my connection too slow? Can't the server process much information at once (I've got many files there, I know I'll combine them to fewer)? What do I have to do to minimise that waiting time?

PS. all the data are on the same server but I'm using subdomains so that the browser can process more files at once.

firebug net tab

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