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March 2008

Volume Activation in Server 2008

This new technology replaces the Volume License Key
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Executive Summary:

Microsoft’s original volume licensing technology used Volume License Keys (VLKs), which could activate an unlimited number of systems. This method created various security and administrative problems. Microsoft Windows Server 2008’s new Volume Activation 2.0 (VA2) uses Multiple Activation Keys (MAKs) or Key Management Service (KMS) hosts to activate systems in medium and large organizations.


Editor's Note:
Following the release of Windows Server 2008, Microsoft provided the following update to this article.

"We thank you for featuring Volume Activation 2.0 in March issue of Windows IT Pro. The article offers a candid view on the activation technology manifested in Windows Vista and Windows Server 2008 and how IT pros should approach it while deploying Windows Vista and/or Windows Server 2008. There are few errors in the article such as when the KMS client fails to renew with KMS host past the 180 days leads to unusable until they reactivate is not true. In such scenarios the resulting experience is notification and not any sort of limited use of the previously activated system. Additional changes we want your reader to take note of includes the initial grace period for Windows Server 2008 is 60 days, the default port for KMS location discovery is 1688, KMS activation threshold is cumulative between Windows Vista and Windows Server 2008, and reactivating the system that has been previously activated using MAK key is possible and it results in 'number of activations used' incremented by one. We would like to highlight to your readers that there is an updated set of prescriptive guidance available at www.microsoft.com/technet/volumeactivation."


If you plan to deploy business versions of Windows Vista or any version of Windows Server 2008—which you’ll do eventually—you need to understand Volume Activation. A VA infrastructure is necessary for companies with more than a few hundred Vista or Server 2008 systems. Without this infrastructure, every volume-licensed build of these systems will eventually fail. In this article I define VA, explain how it works, and offer straightforward recommendations for deploying it in common situations.

Volume Activation Overview
Volume Activation 2.0 (VA2) is a major rework of Microsoft’s original volume licensing technology. In volume licensing, one Volume License Key (VLK) was used to activate an unlimited number of systems. This method required strong security to ensure the VLK was never compromised; if a key was “leaked” and became available on the Internet, Microsoft had to deactivate the key, and all the systems that used the key had to be rekeyed. VA2 avoids this problem by requiring every Vista or Server 2008 build that’s configured for volume licensing to activate with Microsoft, either directly or by proxy.

In VA2, volume builds of the OS use one of two activation methods: Multiple Activation Key (MAK) or Key Management Service (KMS). A MAK is similar to a VLK, but it has some important differences. A MAK has a limited number of activations associated with it, whereas a VLK is unlimited. Every activation instance that uses a MAK must verify with Microsoft; no verification is necessary with the VLK method. KMS is a client/server system that activates multiple clients without requiring any action from the system’s users. Unlike in a MAK activation, a system that uses KMS doesn’t have to contact Microsoft individually. Rather, the KMS hosts themselves activate the license with Microsoft on the client’s behalf. Microsoft expects that medium and large organizations that use VA will use KMS to activate most of their systems.

Before we delve into KMS and MAK activation in detail, let’s look at the five possible license states for VA clients. (Note that only the first state requires no action.) The first and most common state is Licensed, in which the client is activated and functioning normally. Next is Initial Grace or Out-Of-Box Grace; this period occurs after the VA client is first installed. Out-of-Tolerance Grace occurs when hardware changes on an activated system push the system beyond a tolerance level. Non-Genuine Grace occurs when a system that has the Windows Genuine Advantage (WGA) ActiveX control installed fails Genuine Activation. All of these license states have a grace period of 30 days. Finally, Unlicensed occurs when any of the grace periods expire. In the Unlicensed state, a system runs in reduced functionality mode (RFM).

Note that the Unlicensed state behavior is different in Vista SP1. If you’re using a system that hasn’t been activated and gone through the 30-day activation grace period, when you log on to the system on the 31st day, you’ll see a dialog box on a plain black background. You’ll have two options: Activate Windows now, which will bring up all the options to do so; or activate Windows later, which will take you directly to the desktop. Your desktop will appear as before, except you’ll have a plain black background and a message in the lower right corner over the system tray telling you that your copy of Windows isn’t genuine.

Key Management Service Architecture
The KMS VA system consists of one or more KMS hosts (servers) that activate clients configured to use KMS. These clients locate a KMS host by one of several methods and request the host to activate them. The KMS host uses a special KMS key to activate with Microsoft, then acts as a proxy to activate its own clients; the clients don’t need to contact Microsoft to activate. A host can activate an unlimited number of clients. As a result, Microsoft generally provides only one KMS key for an organization. Microsoft designed the KMS system to be highly scalable so it requires a minimum of KMS hosts.

KMS-configured systems must renew with the KMS host on a regular basis, otherwise they’ll eventually fall into the Unlicensed state and essentially be unusable until they reactivate with a KMS host. The reason such a critical piece of Microsoft infrastructure requires so few servers is that the Software Licensing Service has very loose requirements compared with other services. When a KMS client is first built (either a Vista client or a Server 2008 server), it has 30 days to activate. This initial grace period can be reset three times. During this period, the client tries every two hours to activate. After the client successfully activates, it attempts to contact a KMS host once every seven days by default to renew its activation another six months. Each client has a six-month countdown timer that resets whenever the client renews with a KMS host; if the client can’t renew for some reason, the timer keeps counting down, attempting again every week, until the client either renews or falls into the Unlicensed state. So a client attempts to reach a KMS host approximately 25 times. Also, the 15-second Time to Live (TTL) value of each KMS request is extremely long by other services’ standards and the data exchange is quite small, so the network proximity of the KMS host to the clients isn’t especially important.

KMS Installation
KMS can be installed on Server 2008, Windows Vista, or Windows Server 2003 SP1. It’s available on both x86 and x64 architectures for all platforms. No extra software is necessary for Server 2008 or Vista, but to run KMS on Windows 2003, go to the Microsoft downloads Web site (www.microsoft.com/ downloads), search for “KMS on W2K3 SP1,” then download and install either KMSW2K3_ EN-US_x86.zip or KMSW2K3_EN-US_x64 .zip. Both the KMS host and KMS client are part of Microsoft’s Software Licensing Service (slsvc.exe)—but KMS on a Windows 2003 server is referred to as the Software Protection Platform service.

Although KMS is available on Vista, I don’t recommend this configuration. Instead, I suggest that you use a KMS host on a server OS. Such a critical infrastructure service should be installed on an existing server or added as a regular production server.

The main utility to control a KMS host is a straightforward script, slmgr.vbs, which is located in the \system32 folder of volume license versions of Server 2008 and Vista. The most common switches you’ll use are

  • -ipk—Install product key
  • -ato—Activate
  • -dli—Display license information
  • -xpr—Expiration date for current license state
  • -skms—Direct connection (vs. autodiscovery)

The first step in installing a KMS host is to install a volume license version of the OS. A volume license OS version won’t prompt you to provide a license key when you build it. When the installation is complete, use the following command to install the KMS key provided by Microsoft:

  SLMGR.VBS -ipk

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