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Presentation virtualization is a buzz phrase that refers to the features and functionality delivered by Windows Server 2008 version of Terminal Services (TS). With TS you can publish an entire Windows desktop just as in previous versions of TS. This enables your users to make a Remote Desktop connection to a terminal server accessing a fully functional desktop environment. In addition, by leveraging a subcomponent of TS called TS RemoteApp, you can publish individual applications that appear to be running locally on the desktop, but are actually running in your data center on a terminal server.

The value of the TS approach to application deployment is realized in multiple areas. In an enterprise with remote locations utilizing slow links back to a centralized data center, this technology can substantially reduce the bandwidth used across slow Wide Area Network (WAN) circuits. This is because only the keyboard and mouse input along with display information is transmitted keeping the data flow between the TS server and the data source exclusively over the data center Local Area Network (LAN).

TS can enable you to extend the useful life of client computers by moving the heavy processing off of the aging client equipment and onto your terminal servers. This allows you to implement newer more intensive applications without having to perform an expensive and time-consuming enterprisewide PC upgrade project. Along a similar line, performing an upgrade of a TS deployed application is accomplished from your centralized data center location. This can eliminate the need to visit all of the client computers in your enterprise to upgrade a locally installed program. Depending on the circumstances (numbers of computers and remote locations, etc.) this can save your company a considerable amount of money and you a considerable amount of time.

Source of Information : Elsevier-Microsoft Virtualization Master Microsoft Server Desktop Application and Presentation