MAK Proxy Activation: This method uses the Volume Activation Management Tool (VAMT), which is part of the Windows 7 Automated Installation Kit (WAIK). One centralized activation request is made on behalf of multiple computers with one connection to Microsoft online or by telephone. Note: VAMT enables IT professionals to automate and centrally manage the volume activation process using a MAK. http://technet.microsoft.com/en-us/library/ff793438.aspx HTH Milos

I'm assuming Win7Pro adheres to the same behaviour as Win7Ent (I don't use Pro, so can't speak from experience), your 10 clients will have constant notifications/warnings about being non-genuine for 8 months, and, will be unable to obtain optional updates/downloads via WU/MU/AU, and, they will re-contact your KMShost server for activation every 2 hours. I'd consider activating via MAK until you have the threshold quantity, and you can re-key the clients from MAK to KMSclient key. This assumes your clients are primarily LAN-connected and that you have management ability to them, and that you use WSUS or something similar to drive updating your clients.Don

I just want to clarify on your comment. Let's say I initially deploy: One Windows 2008 R2 kms host Ten Windows 7 Pro clients with kms licenses I don't see myself installing an additional fifteen Windows systems (KMS licensed) until 8 months down the road. Will the Ten Windows 7 Pro clients still have full functionality until that time over the period of 8 months) even though they can't be activated because I'm not at the threshold 25+ yet???

We are in the midst of upgrading our infrastructure by deploying Windows 2008 R2 servers and Windows 7 Pro workstations. So far we only have 2 servers deployed using volume license and about 15 Windows 7 Pro workstations deployed using OEM licenses that came with them. Just recently, we just acquired volume license for Windows 7 Pro so we are thinking of converting those Windows 7 Pro workstations from OEM licenses to VL licenses by following this thread: http://social.technet.microsoft.com/Forums/en-SG/w7itprogeneral/thread/1266d32e-5ae2-411a-8272-eacecb4c545c According to this article: http://serverfault.com/questions/162280/activating-windows-7-kms-vs-mak Con: The KMS server must receive activation requests from at least 25 products (any combination of Win7/Vista, Server 2008, and Server 2008 R2) before it will grant activation for Windows 7. Therefore, if you do not have at least 25 computers and/or VMs running Windows 6.x operating systems, you cannot use KMS in your enterprise. Does that mean that I have to wait until I have a total of 25+ combination of Win 7 and Win 2k8 R2 systems before I can implement a KMS host? Which means just deploying the future remaining 8 Windows 7 Pro workstations using OEM licenses (or MAK) and THEN manually convert them to KMS so that I will have 25 before I can implement KMS host?

For less than 25 workstations there is MAK licensing model. Use proxy to "alleviate" activation process. Regards Milos

Yes I am aware there is MAK licensing model. My question is about having 25+ systems in the future and how I should approach the deployment process in the mean time because of the number of systems I have now and the most efficient way to transition to KMS. "Use proxy to "alleviate" activation process". Can you elaborate on this?

MAK Proxy Activation: This method uses the Volume Activation Management Tool (VAMT), which is part of the Windows 7 Automated Installation Kit (WAIK). One centralized activation request is made on behalf of multiple computers with one connection to Microsoft online or by telephone. Note: VAMT enables IT professionals to automate and centrally manage the volume activation process using a MAK. http://technet.microsoft.com/en-us/library/ff793438.aspx HTH Milos

I'm assuming Win7Pro adheres to the same behaviour as Win7Ent (I don't use Pro, so can't speak from experience), your 10 clients will have constant notifications/warnings about being non-genuine for 8 months, and, will be unable to obtain optional updates/downloads via WU/MU/AU, and, they will re-contact your KMShost server for activation every 2 hours. I'd consider activating via MAK until you have the threshold quantity, and you can re-key the clients from MAK to KMSclient key. This assumes your clients are primarily LAN-connected and that you have management ability to them, and that you use WSUS or something similar to drive updating your clients.Don

Hi, only when the threshold minimum is met, will a KMS begin issuing activations. you can use VM's to bulk the threshold, but those VM's will need to phone-home to the KMS periodically, because the threshold must be maintained or activation issuance will cease. If you have client running OEM licenses, then little advantage to touch them three times. e.g. OEM -> MAK -> KMSclient You can use VAMT or SLMGR.VBS to convert them from OEM -> KMSclient, once your KMShost server is at threshold.Don

http://technet.microsoft.com/en-us/library/ff793434.aspx A KMS host responds to each valid activation request from a KMS client with the count of how many computers have contacted the KMS host for activation. Clients that receive a count below their activation threshold are not activated. For example, if the first two computers that contact the KMS host are running Windows 7, the first receives an activation count of 1, and the second receives an activation count of 2. If the next computer is a Windows 7 virtual machine, it receives an activation count of 3, and so on. None of these computers is activated, because computers running Windows 7 must receive an activation count ≥25 to be activated. KMS clients in the grace state that are not activated because the activation count is too low connect to the KMS host every two hours to get the current activation count and will be activated when the threshold is met. My assumption is is that if activation of Windows 7 does not occur by a certain day after installation (3 days? or 30 days? don't remember), Windows 7 will cease to function and the workstation will be considered useless. So according to that link, does that mean that workstations with Windows 7 WILL NOT STOP working even though count < 25?

Hi, KMSclient activations are valid for 180days. Windows7 Enterprise edition does not stop functioning, nor does it switch into "Reduced Functionality Mode", when the license cannot be renewed. KMSclients will display warnings/watermarks etc, but there is no loss of functionality, and no forced shutdowns etc. http://technet.microsoft.com/en-us/library/ff793403.aspx Don