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Windows Server 2008 with Terminal Services and Small Business Server 2011

I am going to install Windows Small Business Server 2011 and need to have Terminal Services on the network so I understand that I need to also have another  Server Running Windows Server 2008 with Windows Terminal Server Licenses.  Will there be any problem installing that 2nd Windows Server 2008 with Terminal Services on the same machine using VM Ware?
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1 Solution
Lee W, MVPTechnology and Business Process AdvisorCommented:
Yes.  VMWare installs additional virtual NICs on the SBS install - this breaks numerous wizards.  STRONGLY advise against this.

Besides, VMWare Server is a Type 2 hypervisor with HORRIBLE performance (as compared to a Type 1 hypervisor (bare-metal) ESXi/HyperV) - I would strongly advise against running your terminal services on it.

If you want to virtualize the server, then you would be advised to virtualize your SBS install into a Hyper-V (my preference) or ESXi VM (possibly need to swing it to do this), then load Hyper-V or ESX(i) on the original server and restore your SBS server into a VM and then create a new VM for the Terminal Server.
intelinetAuthor Commented:
The needs of the client are pretty basic with only 4 Terminal Server users running just one light application that is currently running on an SBS Server.  We are going to install two new servers from scratch since they are currently running a 2003 SBS and a 2003 Server and hoping to save some money on the upgrade.  I don't know too much about Microsofts HyperV, do you have a web page that you think would be best for learning more about it.  What would the pricing be for this scenario?
Lee W, MVPTechnology and Business Process AdvisorCommented:
There would be no extra cost for EITHER HyperV or ESXi.
ESXi is VMWare's free Type 1 Hypervisor.

In my experience and from what I've read, a Type 2 hypervisor performs at ROUGHLY 30-40% hardware.  Meaning, if you have a 2 GHz CPU, the virtual machines react like they have a (on average) 700 MHz CPU.

Likewise, a Type 1 Hypervisor performs ROUGHLY 80-90% hardware.  Meaning, if you have a 2 GHz CPU, the virtual machine reacts like they have a (on average) 1.7 GHz CPU.

Microsoft Virtualization Technology:
TYPE 2: Virtual PC (XP Mode in Win7, meant for use on Client (non-server) operating systems; FREE
TYPE 2: Virtual Server (runs on servers, not meant for client operating systems); FREE
TYPE 1: Hyper-V (COMES with Server 2008 and HYPER-V R2 comes with Server 2008 R2; also available as a FREE download running a "2008 [R2] server core" instance.

VMWare Virtualization Technology:
TYPE 2: VMWare Player (ONLY allows you to run pre-existing/downloaded VMs - cannot create new); FREE
TYPE 2: VMWare Workstation (meant for use on Workstations; COSTS (I think) $200 or so).
TYPE 2: VMWare Server (licensed only for use on Servers; FREE (I thought I heard it was no longer available though...))
TYPE 1: VMWare ESX Server (COSTS - not sure how much, but I think, with management tools, THOUSANDS, potentially)
TYPE 1: VMWare ESXi Server (FREE version of ESX.  It's generally just as capable, especially for small installs - not sure how limited it is compared to ESX).

NOTE: HISTORICALLY, VMWare has SLIGHTLY better performance numbers - if Hyper-V is 80-85% hardware, then ESX(i) is 85-90%.  In these cases, especially for small installs, the performance difference is not usually significant.  Also, ESXi can "pass through" USB devices better than Hyper-V (Hyper-V generally only passes through the keyboard and mouse).

If you were going to need SQL server, then I would say get SBS 2011 with the premium Add-On - but if not, then:
1.  Buy SBS 2011 NON-OEM (ie Volume License preferably, retail if not possible for VL - you CANNOT virtualize OEM licenses)
2.  Buy Server 2008 R2 NON-OEM (this will be your Hyper-V/Terminal Server).
3.  Install Server 2008 R2 (non-"server core" install - Hyper-V is MUCH easier to manage when you have the GUI on the system).  Once installed, the ONLY ROLE you are permitted to install is the Hyper-V role.  NO OTHERS.  You can add features, provided they don't add roles (Microsoft offers Server with a 1+1 license - meaning, you can install it on the physical hardware to use Hyper-V provided that the physical hardware instance ONLY runs the Hyper-V role.  No file sharing, no AD, no printer sharing, not your A/V server, etc.  JUST Hyper-V on the physical server.
4.  Create TWO VMs - one for SBS 2011, one for your Terminal Server.  (SBS needs 10 GB of RAM, the Terminal Server, I would use AT LEAST 2 GB for 4 users with a light app... but frankly, I'd feel more comfortable with 4 GB.  And then the Hyper-V install itself needs 1 GB (at least - I'd prefer 2 GB to be safe).  That totals 13-16 GB of RAM.
5.  Install SBS 2011 first in the VM you created for it and get it all configured.
6.  Install the Server 2008 R2 instance in the other VM and create the Terminal Server (Remote Desktop Server)

(And I would get the server with AT LEAST 3 NICs - one for the Hyper-V system, and one each for each VM (more NICs in case you want to add servers later).  TECHNICALLY, the VMs could share a physical NIC, but considering how relatively cheap NICs are, I would get one to dedicate to each.

More on Hyper-V with a quick googling:
intelinetAuthor Commented:
Thank You Very Much for you thorough explanation and instructions!

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