"The server gets overloaded when it tries to decode a video stream for a large number of users, and some employees end up having a poor experience," he said.

HP's enhanced RDP shifts the burden of decoding video away from the server and onto the thin clients, he said. That will allow companies to stream video to a large number of employees without a deterioration in performance, he said. The new protocol also lets them plug in a wide range of USB peripherals, which don't work well with the existing RDP, according to HP.

The enhanced protocol will be preinstalled starting in January on HP's thin clients running Windows XP Embedded, and on its Linux thin clients later in the first quarter, Malhotra said.

HP said the enhanced RDP is aimed at basic productivity workers. The company also has its own RGS (Remote Graphics Software) protocol, which it positions for applications that use higher end graphics, such as CAD programs, or that multiple users access at once.

While the enhanced RDP will be free, HP charges for its RGS protocol. But on Monday it said it has cut the price of RGS to US$35 per seat, from "between $99 and a few hundred dollars" per seat, Malhotra said. It's also allowing customers to use RGS on non-HP servers, which previously was not permitted, he said.