Updated: July 11, 2020 (September 21, 2009)

  Analyst Report

Terminal Services Licensing Changes

My Atlas / Analyst Reports

1,666 wordsTime to read: 9 min
Rob Horwitz by
Rob Horwitz

Rob Horwitz analyzes and writes about Microsoft licensing programs and product licensing rules. He also trains organizations on best Microsoft... more

Remote Desktop Services (RDS), formerly called Terminal Services, has seen notable licensing changes in Windows Server 2008 R2. While the same basic licensing model applies, license names have changed, new capabilities have been bundled in, and prices have risen modestly. Furthermore, organizations will be able to license some capabilities of RDS through a separate set of Virtual Desktop Infrastructure (VDI) Suites. RDS remains valuable for simplifying application and desktop management, so organizations will want to evaluate licensing options carefully in the wake of the changes—particularly if they want to use App-V to deploy applications on older versions of the product.

When Customers Have to License RDS

Although it’s included as part of the Windows Server code, RDS is licensed separately from the server OS. Uses for RDS have grown, especially over the past two years, and customers will have occasion to use (and license) RDS in three major scenarios.

Server-hosted sessions. RDS enables organizations to run Windows desktop applications on a server and allows users to access these applications from PCs or thin-client terminals. This architecture, which Microsoft sometimes calls presentation virtualization, is analogous to the old mainframe model, where a central computer handles the entire processing load, including presentation, and the user device (e.g., terminal) merely provides an interface for working with applications. This centralizes application deployment and maintenance and enables application access from lower-cost client devices, including older PCs. However, some Windows desktop applications may not work well in a multiuser environment, and users have limited ability to customize their remote desktop environment. (In particular, they cannot install desktop applications on their own.) Session hosting was first introduced as Windows NT Server 4.0 Terminal Services more than a decade ago.

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