I assume that these VMs are running on a single ESXi host with 32 cores? Are these 32 physical cores, or is it the logical CPUs, i.e. Hyperthreading enabled CPUs?
From a first look at this, 16 vCPUs indeed seem to be much, but without knowing the requirements it's impossible to say whether it's too much.
VMware usually manages resources very well, so that you should not get in real trouble with such a configuration. From my personal experience, it's usually not the CPU load which is maxed out with Terminal Servers, but the memory usage.
André
vCenter Server has performance monitoring sections for the VMs, just look at those to see if the VM is using the resources provided.
16 vCPU’s is indeed high when compared to how many your SQL server has.
How many users are using those terminal servers & what applications are the running whilst connected?