Disk Management could not start Virtual Disk Service (VDS) on SERVERNAME. This can happen if the remote computer does not support VDS, or if the connection cannot be established because it was blocked by Windows Firewall.
For additional information about diagnosing and correcting this problem, see Troubleshooting Disk Management in Disk Management help.
To resolve this problem we logged into the Server 2012 core server and enabled the following firewall exception using the netsh command.
netsh advfirewall firewall set rule group="Remote Volume Management" new enable=yes
After adding the firewall exception to our Windows Server 2012 core computer, we can now connect to it using remote disk management.