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DHCP

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How exactly does DHCP work?
Is the lease renewed by the Server or the Client?

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by tlacoppola

The lease is renewed by the Client. However on your DHCP server you setup the lease time period. If the lease expires by default the client will try to renew the same IP. If you are away for awhile when you return you may not get the same IP you had, because it may have been allocated to another client after the lease time expired.

-Tom

by dominicon

DHCP is a way of pre-configuring your TCP/IP settings.

The typical uses are:
IP address
Subnet mask
Router (default gateway)
DNS servers
Wins servers
Node type

There are a whole bunch more too.

When you have a DHCP server configured and a client configured they talk back and forth at network initilization time. Basically the client asks for an address, the server responds with an offered IP, the client responds with the IP it has chosen, then the server acknowledges the choice.
The client will try to renew the lease at 50% of time, if that fails at 87.5% and if that fails at 100% it tries to get a new address like the first time.

For more indepth info you can search on MS or Red Hats knowledge base for platform specific info.

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