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In the event log I get an Event ID 202, Windows Service is out of licenses.  I get this error every 5 hours or so.  I checked our licensing and it says we have 40 licenses and the maximum usage was 35.

What's going on here?
1 Solution
Windows Licencing is complex! For Windows 2003, there are numerous licencing models related to server, clients, Terminal services etc.

Depending on your licencing model, I can give you a few scenarios where this would occur:

1.    You are licenced per client, and you connect with a client that cannot accept and store a licence...perhaps a linux system?

2.    You are licenced per client, and the licence 'tokens' have been distributed to various PCs, but there are more than 40 PCs in total, so although no more than 35 ever connect at once, the client licences have already been consumed by other systems that have previously logged in.

3.    You have had some PCs reinstalled/upgraded, and the client token has been 'lost' as a result of this, reducing the effective number of client licences available.

Note that client licences that have not been used for a period of time - I think it is something like 50-90 days, get automatically returned to the licence pool and are made available to new clients, so you don't actually use them, it just takes time to get them returned, which can be inconvenient.

4.    Someone is attempting to use Terminal Services, and you haven't installed any terminal services licences.....perhaps you are trying to use Citrix with out Terminal Services licences?

5.    There's also some interesting issues relating to 'user access' licences. If someone attempts to access the server from a location with his user identity, but has not logged out of the other location, then you get a similar error.

Have a look here at the licencing confusion created by M$:


To cut down on annoying windows errors, if the licences are the standard CAL's then simply turn off the licence server service.

As long as you're legal (i.e. you've bought all the correct number of CAL's) then you have no need to run the LSS. If can be more pain than it's worth and you don't actual need it run Windows - so thurn the thing off!

Turning off MS-BS is fine but what about if you used Open licensing?  Does that cause any problems turning off LSS?
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