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Windows 2000 Server supports two licensing
modes: per server and per seat. With the per-server licensing mode,
you must add client access licenses (CALs) for specific server
products, such as Exchange Server or Windows 2000 Server itself
(for general client access to the server).

In per-server mode, the server application
compares the number of concurrent connections to the server against
the number of CALs listed in the Licensing console and denies
access when the number of connections reaches the number of
CALs.

In per-seat mode, you must purchase a CAL for
each computer that will access the server, but Windows does not
track connections against CALs in the Licensing console.

Per-seat licensing allows client connections to
servers configured for per-seat licensing, but there’s no guarantee
that a client can connect to a server application configured for
per-server licensing. Server applications configured for per-server
licensing will still need to have CALs added through the Licensing
console even if you’ve configured the server for per-seat
licensing.

In addition to using the Licensing console to
add CALs for specific products, you can also use it to switch from
per-server to per-seat modes for a given server application. This
change is one-way, and you’ll only be able to make the change
once.

To change licensing modes, open the Licensing
console. On the Server Browser tab, expand the server, and
double-click the server application. Select Per Seat, and click
OK.