I am sure that those have experience on windows 2003 or Windows 2008 servers, even windows XP, Vista and 7, know this feature.
Basically, you can run this application for two reasons. One of them is that if you have cloned server OS that means second server has same SID which original server has and another one is that you would like to create an image server file and then you want to clone it.
Basic operation is install a windows 2012 server and do not install anything else. In order to clone it, you need Vmware or Hyper-V. I am working on Vmware now. Build a fresh server, run sysprep with setting below and wait a couple of minutes.
When the server is powered off, you can clone it or create a template easily.
Your folder is c:\windows\system32\sysprep\
Step 1 – run Sysprep.exe
Step 2 – wait until the server is powered off