Yes, deploying Windows Server 2008 Terminal Services is the cheaper solution which can give citrix like functionality at a fraction of a cost of equivalent citrix solution.

Let's see what are the different types of roles available for Terminal Services in Windows Server 2008 first. There are five roles:

1. Terminal Server - TS enables a server to host windows-based programs or the full windows desktop. Users can connect to a terminal server to run programs, save files, and use network resources on that server.
2. TS Licensing - TSL manages the terminal services client access licenses (TS CALs) that are required to connect to a terminal server. You can use TS Licensing to install, issue, and monitor the availability of TS CALs.
3. TS Session Broker - TSSB (formerly session directory) supports session load balancing between terminal servers in a farm, and reconnection to an existing session on a terminal server that is a member of a load balanced terminal server farm
4. TS Gateway - TSG enables authorised users to connect to terminal servers and remote desktops on the corporate network over the internet (YES, OVER THE INTERNET)
5. TS Web Access - TSWA provides access to terminal servers through a web browser or sort of like citrix application publishing over the web.

I pointed out about device access in my earlier post, differentiating between emulated device and non-emulated device in Hyper-V. Ever wondered how non-emulating devices work internally in Hyper-V? If not, then read on...

Device access virtualization is a method for sharing hardware efficiently without any emulation. All physical devices are controlled by existing device drivers without creating new ones.

VSP's or Virtualization Service Providers runs within parent partition. It talks to the respective device driver and acts as a multiplexer and offers hardware services to guests by establishing a communication with VSC's or Virtualization Server Clients over VMBUS (A communication channel for VSP's and VSC's).

VSC's runs within the child partition and acts as a service. For every VSC, there will a corresponding VSP in parent partition. It's the VSP/VSC pair which makes a device type within a guest. Microsoft provides VSP/VSC pairs for storage, networking, video, input, USB.