A user terminal emulation server maintains a database identifying network addresses, UI capabilities, and locations of I/O user devices. Communication sessions are established between first and second user terminal emulation applications and respective first and second I/O user devices proximately located to respective first and second users and which provide acceptable combined I/O user interfaces to the first and second users. When a direct path criterion is satisfied for creating a direct traffic flow, a traffic flow that was from the first I/O user devices to the first user terminal emulation applications is redirected to now be from the first I/O user device to the second I/O user device without passing through either of the first and second user terminal emulation applications.