Remote Desktop Services 2012 slows down application hosted locally on the server

Hi All,

This is a continuation of the question - http://www.experts-exchange.com/OS/Microsoft_Operating_Systems/Server/Windows_Server_2012/Q_28509062.html 
We have now nutted down that the problem is with terminal services and not hyper -v.

Scenario

What we have is a flat file database application.
When running reports through this application on a PC or on a Windows Server 2012 OS, it runs extremely fast. Reports generate in approx 25 seconds.
Next you install Remote Desktop Services  (Terminal Services) on Server 2012 and the reports start taking 4 minutes (Note: This is the test result of doing this in isolation).
Uninstall Remote Desktop Services and reports go back to working as normal i.e. 25 seconds on reports.

We have tested both Virtual Server running on Windows Server 2012 with HYPER-V installed as well as a physical server running Windows Server 2012.

Resource monitor has been tested and plenty of CPU, RAM and DISC SPEED available.
Also note: We are talking about an application running locally and not running of the Network.

The issue really is with REMOTE DESKTOP SERVICES 2012.

Software vendor says that his application works well in Terminal services at other sites and it is us doing something wrong. If someone can point us in the right direction that would be appreciated.
We have a single server running Terminal services. Snapshot below.
deployment-TSERVER.png
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manav08Asked:
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manav08Author Commented:
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djcanterCommented:
See the below link.

I believe it is resource limiting per user/fair share functionality causing your issue.

http://virtualization.vanbragt.net/index.php/articles/general-articles/fairshare-of-resources-in-rd-session-host
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manav08Author Commented:
djcanter, you are a fukin legend mate.
That is exactly what it was...FAIR SHARE.
Turned it off and everything worked fine.
Why would Microsoft have an inefficient service like FAIR SHARE. It even slowed our reports down with just 1 user being logged in which doesn't make sense. They should get rid of this crap.
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manav08Author Commented:
A gem of a solution.
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Windows Server 2012

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