Many of you remember that Windows XP allowed 10 concurrent connections. There was also the limit of five connections if you were running Home Basic edition, or 10 connections for the Home Premium or higher editions.
Windows 7 supports 20 connections for all editions and for services such as File Services, Print Services, IIS connections and ICS.
If you want to see this in action, run the winver command and then click the Microsoft Software License Terms link. Then scroll down to section 3f. You should clearly read the following text:
f. Device Connections. You may allow up to 20 other devices to access software installed on the licensed computer to use only File Services, Print Services, Internet Information Services and Internet Connection Sharing and Telephony Services.