Your system is configured to download updates from a private server, not from Apple. That server isn't working or isn't reachable. If you're bound to a network directory server, or if you're behind a firewall that doesn't allow downloading updates directly from Apple, your network administrator has to solve the problem. Otherwise, proceed as follows.
Back up all data.
Triple-click anywhere in the line below on this page to select it:
/Library/Preferences/com.apple.SoftwareUpdate.plist
Copy the selected text to the Clipboard (command-C).
In the Finder, select
Go ▹ Go to Folder…
from the menu bar. Paste into the box that opens (command-V), then press return.
A Finder window will open with a file selected. Delete the selected file. You may be prompted for your administrator password. Try Software Update again.