Windows Server 2008 R2 Hyper-V provides several improvements over the previous version including better flexibility through features like live migration and cluster shared volumes. It also offers improved performance through enhancements to memory management, TCP offload support, and network functionality. Additionally, it provides greater scalability with support for up to 32 logical processors and a core parking feature to improve energy efficiency. Overall, the document discusses how Windows Server 2008 R2 Hyper-V virtualization capabilities help reduce costs through server consolidation while increasing flexibility and performance.