This is not lengthy talk on what good can Volume Activation 2 do to a corporation. More info about VA2 is hosted here on official Microsoft website.

I’ll show you what in fact is Windows KMS activation and how it actually works in life.

What is Key Management Service (KMS)?

KMS is a lightweight service that does not require a dedicated system and can easily be co-hosted on a system that provides other services. With KMS, you can complete activations on your local network, eliminating the need for individual computers to connect to Microsoft for product activation.

In short, KMS is a service, hosted on a Windows volume client or server, to provide unlimited activations for its client systems, client or server products.

KMS activation is what Microsoft meant to be used only within corporate infrastructure, so it has strict prerequisites. A certain number of clients must exist before KMS activation server can function.

KMS server will record every request from its clients and count it against the predefined threshold. That means, none of the clients will be activated before the activation server receives enough requests.

For instance, if you want to activate your local servers, running Windows Server 2008, or R2, regardless of edition, you’ll need five of them before any can be activated.

You’re supposed to use command to set clients’ activation server address, and activate the client. KMS server will receive this activation request if settings right, and record it as one count. For now your first server isn’t activated, which will just prompt you there are insufficient clients. Repeat the action on the other three, KMS server will count four now, while the servers are still not activated.

Now when you set up the fifth server, it sends its request to KMS server, for which the counts equals the threshold, and it’ll be able to activate the clients right away, including the first four, but that will need a moment, as KMS clients will automatically re-send its activation request at the set interval until they get activated, your other four servers will be activated when they next send their activation requests.

If you want to activate volume Windows clients, like Windows Vista Business, or Windows 7 Enterprise, you’ll need 25 systems before KMS server will unleash its magic.

If you have deployed Microsoft Office 2010 products, including Project 2010 and Visio 2010, you’ll need 5 systems running these.

Initially with the introduction of VA2, if the activation request is sent from a virtual machine, that won’t be counted, even although they can be activated after the KMS server starts to function. After Windows Vista SP1, Microsoft modified its policy to allow virtual machine to be counted as valid client to ease the deployment of KMS activation.

For KMS servers, a specific number of counts is required before they start to function. However, if a client couldn’t connect to the activation server for 30 days, the server will consider this client offline and deplete one activation count. Activation counts may drop below the required threshold when a lot of clients undergo maintenance.

So to not be interrupted in servicing, they have a count buffer of 25, which means activation counts will max at 50, twice the threshold for it to function wholly. This doesn’t mean only 50 clients can be activated. Any number of clients can be activated, but only 50 latest will be recorded as activation counts, serving as some kind of fail-safe.

How does Key Management Service work?

First of all, you need a volume license to gain KMS server license keys.

Customers who purchased volume licensing products may have them through Volume Licensing Service Center, VLSC, where all types of volume license keys are provided for the products you purchased.

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Microsoft had been easing volume licensing all these years, which peaked when they shipped Windows 7. However, as I mentioned in mini review of Microsoft Office 2010, much stricter licensing came for Office 2010. [I hope that's "for, instead of "with"] Fortunately, things remain simple as to KMS licensing. Tradition of easing licensing still prevails for Office 2010.

KMS license keys have hierarchy levels and they have inclusive rights to activate older versions, officially referred as [N-1] version, thus making the product key at the highest hierarchy the most mighty. I had written an article about this months ago.

For now, the most powerful KMS license key is for Windows Server 2008 R2 Datacenter in group KMS_C, which can activate every single volume edition of Windows incorporating VA2, citing its inclusive activation rights.

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VA2 for Windows started with Windows Vista back in 2006, while for Office, it’s just started in 2010 with Office 2010, making them hard to be combined into one, hence KMS service is divided into for Windows and for Office.

All Office 2010 applications and suites provided in volume licensing can be activated by KMS server for Office.

KMS server for Windows

Using KMS license key, we can build custom activation server, the mighty KMS server. To build that server, we have to use volume editions of Windows clients/servers as required by Microsoft. Volume editions of Windows Server 2003 can also be used for consideration of better compatibility.

Here well use Windows Server 2008 R2 Enterprise to serve as the KMS server.
First, try activate the OS with KMS server product key, and we’ll see this notice which won’t show up if using normal keys.

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Click OK, wait half a minute, and we got an activated KMS server.

Go to VLSC and download a Volume edition of Windows client, say Windows 7 Professional. You can also convert retail edition to volume activation by simply installing VA2 client keys. [Take a look at the super fast transfer rate. So awesome]

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Install the OS on a client PC, and use the command to set its activation server by your local address. Activate it. if the activation record counts over 25, activation threshold for Windows clients, you’ll end with one good genuine Windows to use for 180 days.

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And detailed info on the activated client.

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Here’s another activated client running Windows Server 2008 R2 Datacenter.

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On the activation server’s end, total activation count will increment. When that reaches to 5, it can activate Windows servers; when that reaches 25, it can also activate Windows clients.

Many wonder what would it be like at the mighty activation server’s end, and here it is. Detailed info for an working activation server.

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KMS server for Office

A little complaint about Office 2010 licensing

Office 2010 employs very strict licensing strategy, adding to its already complex application and suite SKUs, resulting in an outcome of a stunning variety of editions.

As usual, volume edition software is needed for use with KMS activation. For Windows OS, be it client or server, you can convert any system to volume edition by simply installing a volume client key. But for Office 2010, it’s quite another story. There is no way for Office 2010, app or suite, to be converted to volume activation. You’ll need a volume edition to begin with.

Now matter how many apps or suites you installed within one system, once you set the valid activation server address, all will be activated at once, and only one increment for activation is counted on activation server’s end, while for which to function, 5 activation counts has to be reached.

I installed Word 2010 [app] and Office 2010 Professional Plus [suite] on the same computer to showcase the special activation scene.

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Multiple activation happens in Office 2010 when you installed multiple license keys of varied SKUs.

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At the server’s end. Another mighty server.

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To make deployment easier, Office KMS service can be co-hosted with Windows KMS service, but Microsoft ditched Windows Vista and Windows Server 2008 volume editions for use with Office 2010 KMS. They must be upgraded to latest platforms, Windows 7 and Windows Server 2008 R2 to host Office KMS service. However, Windows Server 2003 is still shown green light for supporting Office 2010 activation.

KMS activation requires only one-time activation with Microsoft server, after which it can activate unlimited volume Windows and Office systems for a period of 180 days. Clients have to re-connect to KMS server at least once within the 180 days to renew its activation for another span of 180 days to stay genuine.

To sum up, KMS activation came to help ease deployment of volume systems in corporate infrastructure. Certain threshold exists to thwart misuse. KMS activation is lightweight service, and can be co-hosted on enterprise servers.