The Terminal Server Licensing service is a separate entity from the terminal server. In most large deployments, the license server is deployed on a separate server, even though it can be co-resident on the terminal server in some smaller deployments.
Terminal Server Licensing is a low-impact service. It requires very little CPU or memory for regular operations, and its hard disk requirements are small, even for a significant number of clients. Idle activities are negligible. Memory usage is less than 10 megabytes (MB). The license database will grow in increments of 5 MB for every 6,000 license tokens issued. The license server is only active when a terminal server is requesting a license token, and its impact on server performance is very low, even in high-load scenarios.
A terminal server running Windows Server 2003 does not communicate with a terminal server licensing server running Windows 2000. It is, however, possible for a terminal server licensing server running Windows Server 2003 to communicate with a terminal server running Windows 2000 Server. Therefore, when upgrading terminal servers running Windows 2000, you need to install and activate a licensing server that runs Windows Server 2003, which communicates with terminal servers that run both Windows 2000 and Windows Server 2003.
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