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  1. Use floating licenses. Your software can be safely allowed to run on a virtual machine, because the license server, which is located on a physical machine, will ensure there is no license overuse.

  2. Use dongles. If your customer wants a license server running on a virtual machine, you can lock the license server to a dongle, which is a physical device that locks the application to the machine on which it's installed. Dongles, which may be obtained from X-Formation, provide adequate security to prevent cloning of the license server.

  3. Lock the license to a BIOS HostID. This solution works for both local licenses and network licenses. The BIOS on most virtual machines is unique, because it contains a unique virtual machine ID (UUID). An example is shown below:

    LM-X End-user Utility v3.4
    Copyright (C) 2002-2010 2016 X-Formation. All rights reserved.
    BIOS: Phoenix Technologies LTD - UNKNOWN
    Hostid: VMware-42321a30c22ce364-aca97bac6ea0bdb8

    Note that the UUID can easily be changed, so this is not an entirely secure solution. However, if the virtual machine is connected to a management control solution (such as VMware vCenter), duplication of UUID's is typically not permitted and causes problems for real-life production setups.

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