The LM-X License Server is a machine used to host network (floating, or shared) software licenses. Unlike node-locked licenses that are installed locally on individual users' machines, network licenses are able to be shared among many users. The LM-X License Server fulfills requests to run the network application if the requested license(s) are available. When the network license is released (for example, a user closes the application), the license is reclaimed by the license server and made available for other checkout requests.

When you start the LM-X License Server, it reads the associated configuration file (if one exists) to determine user settings such as the log file output path, whether certain users should be denied checkout of licenses, etc. (See License server configuration file.) The following sections describe how to manage the LM-X License Server.