I have 10 Windows Server 2008 R2 servers. Each has SEP installed and is in a client group called 'servers'. I then have a 'client' group containing all clients.
Both groups have locations configured by IP subnet.
I've then got a 'shared' live update policy for every location assigned to both groups (clients and servers)
Server Group - Location 1 = Location 1 Live Update Policy
Client Group - Location 1 = Location 1 Live Update Policy
Server Group - Location 2 = Location 2 Live Update Policy
Client Group - Location 2 = Location 2 Live Update Policy
In the live update policy, it's set to use 'GUP' which is the server name of the relative server name in the server group.
When the 'use Group Update Provider' is checked, the servers and clients don't get any updates, but the server is registered as a GUP.
I've tried unchecking the 'use Group Provider' and clients (and servers) get updates from the SEPM. After doing that, the 'server' is no longer registered as a GUP, but has the latest content.
SEPM & client SEP is 11.0.700.975.