Hosted Shared Desktop, also known as Remote Desktop Services (RDS) or Terminal Services (older Microsoft terminology), is a desktop virtualization technology where multiple users share the same Windows Server operating system while each user gets an independent, secure session.
Unlike Virtual Desktop Infrastructure (VDI), where every user has their own virtual machine (VM), RDS allows many users to work on a single Windows Server simultaneously. This makes it a more cost-effective solution for organizations where users primarily need standard business applications.
Users
┌────────┬────────┬────────┐
│ PC │ Laptop │ Thin │
│ │ │ Client │
└────┬───┴───┬────┴───┬────┘
│ │ │
└───────┼────────┘
│
Internet / LAN
│
Remote Desktop Protocol
(RDP)
│
┌──────────────────────────┐
│ RD Connection Broker │
└──────────┬───────────────┘
│
┌──────────┴──────────────┐
│ Remote Desktop Session │
│ Host (Windows Server) │
├─────────────────────────┤
│ User 1 Session │
│ User 2 Session │
│ User 3 Session │
│ User 4 Session │
└──────────┬──────────────┘
│
Shared Storage
Each user logs into the same server but receives:
Their own desktop session
Their own applications
Their own documents
Their own profile
Their own permissions
The operating system is shared, but user sessions remain isolated.
The Session Host is the server where users actually work.
Responsibilities:
Runs Windows Server
Hosts user sessions
Runs installed applications
Manages CPU and memory usage
Example
Windows Server 2022
CPU: 16 Cores
RAM: 128 GB
Users: 60
The Connection Broker:
Authenticates users
Reconnects disconnected sessions
Distributes users among multiple session hosts
Performs load balancing
Example
Login
↓
Broker
↓
Server A
Provides a web portal for users.
Users can
Launch desktops
Launch published applications
Access remote resources
Example
Browser
↓
Company Portal
↓
Click Desktop
Allows secure external access.
Instead of exposing RDP directly to the internet,
Internet
↓
Gateway
↓
Internal RDS
Advantages
Encryption
Authentication
Firewall friendly
Secure remote access
Tracks RDS licences.
Without valid licences,
users can only connect during the grace period.
Licence types
Per User
Per Device
Handles
Authentication
Passwords
Security Groups
Group Policies
Example
Domain
company.local
Stores
User profiles
Documents
Shared folders
Common options
File Server
NAS
SAN
Azure Files
Users
│
Remote Desktop Client
│
┌───────────┴────────────┐
│ RD Gateway (Optional) │
└───────────┬────────────┘
│
RD Connection Broker
│
┌───────────┴────────────┐
│ Session Hosts │
│ Server 1 Server 2 │
└───────────┬────────────┘
│
Shared File Storage
Lower hardware costs.
Multiple users share one server.
Centralised software management.
Easier updates.
Reduced software licensing in some scenarios.
Supports thin clients.
Suitable for large numbers of office users.
Users share the same operating system.
One poorly performing application can affect others.
Some software is not designed for multi-user environments.
Less personalisation than VDI.
Resource contention if too many users connect.
Ideal for:
Call centres
Schools
Hospitals
Banks
Government offices
Accounting firms
Customer support teams
Data entry operations
The following example assumes Windows Server 2022.
Example
Windows Server 2022
16 CPU
128 GB RAM
1 TB SSD
Assign
Static IP
Hostname
DNS
Join the server to Active Directory.
Example
Server
↓
company.local
Restart after joining.
Open
Server Manager
↓
Add Roles
↓
Remote Desktop Services
Install
RD Session Host
RD Licensing
RD Connection Broker
RD Web Access
RD Gateway (if needed)
Restart the server when prompted.
Open
Remote Desktop Licensing Manager
Activate the server.
Install
Per User licences, or
Per Device licences
Configure the licensing mode in Group Policy or the RDS deployment settings.
Example
Maximum Sessions
100
Timeout
30 minutes
Configure
Session limits
Idle timeout
Reconnection behaviour
Printer redirection
Drive redirection
Clipboard policies
Install
Microsoft 365
Chrome
ERP
SAP
Accounting Software
PDF Reader
Test that each application supports multi-user operation.
Example
Accounting
HR
Sales
IT
Assign permissions appropriately.
Options include:
User
↓
Server Profile
↓
Any Session Host
Login
↓
Profile Container
↓
Desktop
↓
Logout
↓
Profile Saved
Benefits
Faster sign-in
Consistent user experience
Better Office and OneDrive compatibility
Example
CompanyData
Finance
HR
Projects
Assign NTFS and share permissions based on user groups.
Enable
Multi-factor authentication (MFA) for remote access
Network Level Authentication (NLA)
Firewall rules
Antivirus or endpoint protection
Automatic Windows updates
Strong password policies
Least-privilege user accounts
Required for secure internet access.
Example
Internet
↓
HTTPS (443)
↓
RD Gateway
↓
Session Host
Benefits
No direct exposure of RDP
SSL/TLS encryption
Centralised access policies
Users open
https://portal.company.com/RDWeb
They can
Launch a full desktop
Launch individual published applications
Reconnect to sessions
For larger deployments
Broker
↓
Server 1
↓
Server 2
↓
Server 3
The broker automatically distributes users across available Session Hosts.
Back up
User profiles
Shared storage
RDS configuration
Licensing information
Application data
Test recovery procedures regularly.
Verify
Login
Desktop availability
Application performance
File access
Printing
Audio
Clipboard redirection (if enabled)
USB redirection (if allowed)
Session reconnection
| Component | Configuration |
|---|---|
| Users | 100 |
| Session Hosts | 2 |
| Windows Server | 2022 |
| CPU | 16 cores per host |
| RAM | 128 GB per host |
| Storage | 4 TB SSD |
| RD Gateway | 1 |
| Connection Broker | 1 (or 2 for high availability) |
| Licensing | Per User |
| Profile Management | FSLogix |
Use Network Level Authentication (NLA) to require authentication before a session starts.
Deploy RD Gateway rather than exposing RDP directly to the internet.
Use FSLogix for user profile management.
Separate Session Hosts from file servers and domain controllers.
Monitor CPU, memory, and disk performance to avoid oversubscription.
Apply Windows and application updates during maintenance windows.
Use Group Policy to standardise security and user settings.
Regularly review active sessions and licence usage.
User
│
▼
Open Remote Desktop Client
│
▼
Enter Username + Password
│
▼
Multi-Factor Authentication (if enabled)
│
▼
RD Gateway (for external users)
│
▼
RD Connection Broker
│
▼
Assigned Session Host
│
▼
User Session Starts
│
▼
Applications Load
│
▼
User Works
│
▼
Logout or Disconnect
| Feature | RDS | VDI | DaaS |
|---|---|---|---|
| Desktop type | Shared Windows Server sessions | Dedicated virtual desktop per user | Cloud-hosted virtual desktop |
| Operating system | Windows Server | Windows 10/11 or Linux VM | Windows/Linux VM in the cloud |
| User isolation | Separate sessions on one OS | Separate VM for each user | Separate VM (or pooled VM) managed in the cloud |
| Infrastructure ownership | Organisation | Organisation | Cloud provider |
| Initial cost | Low | High | Low |
| Scalability | Moderate | Moderate (depends on infrastructure) | High |
| Personalisation | Limited | High | High (persistent) or moderate (pooled) |
| Best suited for | Task workers, call centres, office staff | Developers, engineers, knowledge workers | SMBs, remote workforces, organisations seeking managed infrastructure |
In summary, Hosted Shared Desktop (RDS) is the most cost-effective desktop virtualisation option for organisations with many users running similar applications. It delivers a full desktop experience while allowing multiple users to share a single Windows Server, making it simpler and less expensive than VDI, though with less isolation and customisation.