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The decision whether the license server should run on a separate instance depends on the customer's requirements.
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VMware-based VE License Server Overview
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The following image illustrates a topology where the VE license server binds to the ESXi host on which the VM with the license server runs. It shows one VM with license server and emulator software and another VM on the same ESXi host with the emulator software configured to use the license server via the network.
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VE License Server Binding with vCenter Server
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