A multi-user host computer system comprises processor blades combined with terminal services blades to provide acceleration and proxy server functions for supporting a variety of remote terminals. For each remote terminal, the terminal services blade and proxy server functions may improve the video and graphics performance. This allows the multi-user host computer system to more efficiently support multiple users. The terminal services blade may include a graphics processor that manages a virtual display for each remote terminal and provides selective updates of sub frame data. Where appropriate, the sub frame data is encoded and transmitted over the network to the remote terminals. The terminal services processor also offloads and optimizes video data streams for the intended remote terminals and their respective network connections. Processor blades may include a baseboard management controller that utilizes advanced features for supporting remote KVM administration.