Licensing issues

One feature of Windows .Net Server that could mean problems for some companies is the product activation. Windows .Net Server will incorporate the controversial product-activation mechanism that's in Windows XP. To prevent piracy, Microsoft will let users who don't have a Windows volume license use Windows .Net Server for a trial period and then require them to obtain an identification number from Microsoft to continue to use the software. The operating system tracks the configuration of the server it's running on, and deactivates if it's copied to another, unlicensed server.

A problem can arise if a user makes extensive hardware modifications to the server running Windows .Net Server: The software might think it's been copied to another server and deactivate its license. Microsoft assures users that, in that case, the users can contact Microsoft to obtain an additional license number at no additional cost; but some customers are skeptical.

Companies with volume licenses will not be required to use product activation.

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