The license server can manage licenses over a local area network, an intranet, virtual private network, or the Internet.
Floating licensing is often used for high-value applications in corporate environments; such as electronic design automation or engineering tools.
A license server was required at each end user's location and each computer or device in a network needed to connect to it.
License files are usually tied to the host ID of the license server by a MAC address or Ethernet address.
Although on-premise license servers are the traditional method of implementing floating licensing, modern solutions make use of cloud-based and plug and play solutions.