Solved Windows Server 2012 R2 upgrade over R1?

Recently, Microsoft included the Windows Server 2012 R2 RTM on their Dreamspark basic site. Currently, I'm running the R1 version on a virtual machine using VMware Player. How can I upgrade the R1 to R2 while keeping all of my files and settings using VMware?

Do I just boot from the ISO (I haven't downloaded it yet) (CD/DVD settings inside R1 VM) and then it will detect and upgrade R1 or I have no choice but to create another VM and then manually replicate my files and settings from R1 VM? I really don't want to do the latter since it's very time consuming. I hope someone has thoughts on how to do this.

Wow, I just redirected VMware to the R2 iso and just followed the simple steps and I'm now currently upgrading on VMware. I didn't know it was possible to do that. I'll mark this thread as solved if there are no issues with the in place upgrade. Hopefully, everything works fine.



Update: everything went smoothly and now enjoying Server 2012 R2. Sadly, no colorful backgrounds in R2 unlike 8.1. All of my "3D" Metro App games like Pinball FX2, Jetpack Joyride, etc. work perfectly after the in place upgrade .