Windows Server 2012 Standard edition includes Remote Desktop Services (RDS) but limits concurrent connections to 2 users by default. This isn't a technical restriction but rather a licensing one. While your server team isn't wrong about the limitation, their solution of reinstalling the OS is unnecessarily drastic.

Before considering OS reinstallation, try these methods:

1. Using Group Policy to Bypass Limits (Temporary Fix)

This registry tweak can override the limit (not recommended for production):

Windows Registry Editor Version 5.00

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Terminal Server]
"fDenyTSConnections"=dword:00000000

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\TermDD]
"Start"=dword:00000002

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\TermService]
"Start"=dword:00000002

[HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows NT\Terminal Services]
"MaxInstanceCount"=dword:0000000a

2. Proper Licensing Upgrade Path

To legally increase the limit:

1. Purchase RDS CALs (Client Access Licenses)
2. Install the Remote Desktop Services role
3. Configure the RD Licensing server

To confirm your current configuration:

# PowerShell command to check current RDP connections
Get-RDRemoteDesktop

# Check licensing mode
(Get-WmiObject -Class Win32_TerminalServiceSetting -Namespace root\cimv2\TerminalServices).LicensingType

For enterprise environments, consider:

# Install RDS role using PowerShell
Install-WindowsFeature RDS-RD-Server -IncludeManagementTools

# Configure licensing (replace with your license server)
Set-RDLicenseConfiguration -LicenseServer "your-license-server" -Mode "PerUser"

Create a simple monitoring script:

$sessions = qwinsta | Where-Object { $_ -match '^>' } | Measure-Object
Write-Host "Active RDP sessions: $($sessions.Count)/$maxSessions"

The 2-user limit you're encountering stems from Windows Server 2012's default Remote Desktop Services (RDS) licensing configuration. By default, it only permits 2 simultaneous administrative sessions (not full RDS sessions) under the "Remote Desktop for Administration" mode.

While your server team suggested reinstallation, there are alternative approaches:

# Check current RDS configuration via PowerShell
Get-WindowsFeature | Where-Object {$_.Name -like "*RDS*"}

Option 1: Install RDS Role (Requires CALs)

# Install Remote Desktop Services role
Install-WindowsFeature RDS-RD-Server -IncludeManagementTools

# Then configure through Server Manager:
# Server Manager > Remote Desktop Services > Deployment

Option 2: Hacky Registry Edit (Not Recommended for Production)

Windows Registry Editor Version 5.00

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Terminal Server]
"fDenyTSConnections"=dword:00000000
"MaxInstanceCount"=dword:0000000a

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\TermService]
"Start"=dword:00000002

Before increasing sessions, verify server capacity:

# Check current session load
query session /server:localhost

# Monitor performance counters
Get-Counter -Counter "\Terminal Services(*)\*" -SampleInterval 2 -MaxSamples 5

For teams needing occasional access:

• Implement shift-based scheduling
• Use RDP session shadowing
• Consider lightweight alternatives like SSH for certain tasks