New Server 2003 license question

Hi.

I just took over a server from someone else, and am used to SBS2003 and it's licensing.  This one is running server 2003 and is NOT running active directory.  THey received 5 user cals from Dell when they bought it.

The administrative tools/license reports that there is no license server available, and the only reference to licensing I can find is under Control Panel/License (which is set to "per user or per device").  Is there a limit to the number of PC's that can connect to the server in this fashion?

I want to advise him correctly regarding licensing, and understand that he will need to purchase licenses for each PC that he connects to the server.  But right now he has 21 workstations running perfectly this way without problems!!!!

If I buy 20 additional licenses from MS, do I actually need to put them into the Control Panel/licensing module, or can I just use the honor system to keep it going and inform him that he needs to buy the additional licenses?
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kurtbmillerAsked:
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Netman66Commented:
No - if this is Server 2003 you are asking about.  You have as many connections as you want provided you have CALs.  In SBS 2003 this is limited to 75.  In Server 2003 Web, this is 10.  In XP it's also 10.

As far as I know, the server doesn't need to be in domain mode but the CALs are used in the same way.



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bwalker1Commented:
You need to purchase separate terminal services licensing.  

http://www.microsoft.com/windowsserver2003/techinfo/overview/termservlic.mspx
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kurtbmillerAuthor Commented:

We are not using Terminal Services at all and do not plan on it.
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Netman66Commented:
You purchase the CALs and you should enter them in Licensing, yes.

You are legal if you don't as long as the number of CALs meets or exceeds the number of connected workstations.

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kurtbmillerAuthor Commented:

But there is no where to enter the number of cals when using per user/per device.  That was my question.  Is just buying the licenses to be "safe" from the license police good enough, or do I have to absolutely switch to "per server" in Control Panel/Licensing.
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Netman66Commented:
Yes.  Most places I've dealt with turn off License Server it just nags you.

As long as the number of CALs equals or surpasses the number of connected workstations you are legal.

You cannot switch from per user to per server.  It works once from per server to per user, but is irreversible.

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kurtbmillerAuthor Commented:

OK.  So I do NOT have a 10user concurrent connection limit using per user (unspecified users since I cannot specify a number) like I am with Win XP Pro?  Remember, I am not in a domain environment, just a workgroup.
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kurtbmillerAuthor Commented:
OK.  thank you very much for the info.  I will advise the customer to purchase 20 additional CAL's and have him just file them away for the license police.

I find it very stange that Microsoft doesn't make you activate per user licenses the same way they do in SBS 2003.
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Netman66Commented:
Yeah, it's a bit different with regular server 2003.  SBS is pretty tuned.  I would say the license compliance is tightly integrated with the 75 user limit and that's why it's necessary.

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