How to Install & Configure RDS User CALs on Windows Server 2025 / 2022 (Step-by-Step)

The 120-Day Remote Desktop Licensing Grace Period Trap
When you deploy the Remote Desktop Session Host (RDSH) role on Windows Server 2025 or Windows Server 2022, Microsoft grants a default 120-day evaluation grace period. Once this period expires, all remote user connections will be abruptly terminated with the error: "The remote session was disconnected because there are no Remote Desktop License Servers available to provide a license."
To support multi-user concurrent remote work environments, corporate VPN alternatives, and terminal server workloads, you must deploy an activated Remote Desktop License Server loaded with genuine Client Access Licenses (CALs).
User CALs vs Device CALs: Which Should You Deploy?
| Licensing Model | How It Works | Best Suited For |
|---|---|---|
| RDS User CALs (Recommended) | Assigned to an individual Active Directory user account. That user can access the RDS host from unlimited devices (office PC, home laptop, iPad, phone). | Remote workers, hybrid teams, and mobile executives. |
| RDS Device CALs | Tied to a physical workstation or thin client. Multiple shift workers can log in using that single machine. | Call centers, hospital nurse stations, and warehouse terminals. |
Step 1: Install the Remote Desktop Licensing Role
- Launch Server Manager, click Manage > Add Roles and Features.
- Under Server Roles, select Remote Desktop Services.
- Under Role Services, check Remote Desktop Licensing and Remote Desktop Session Host.
- Click Install and restart the server when prompted.
Step 2: Activate the License Server in RD Licensing Manager
- Open Server Manager > Tools > Remote Desktop Services > Remote Desktop Licensing Manager (
licmgr.exe). - Right-click your server name and select Activate Server.
- Choose Automatic connection, fill in your organizational contact information, and click Next to establish communication with Microsoft Clearinghouse.
Step 3: Install Your RDS 50 User CAL License Pack
- In RD Licensing Manager, right-click the activated server and select Install Licenses.
- Under License Program, select Retail Purchase (or License Agreement).
- Enter your 25-character digital license key for your Windows Server 2025 + RDS 50 User CAL Pack.
- Click Finish. The licensing console will display 50 available User CAL tokens ready for deployment.
Step 4: Configure Group Policy (GPO) to Enforce Licensing Mode
Even after installing CALs, the RDSH host will not consume them unless the licensing mode is explicitly declared in Group Policy:
- Press Win + R, type
gpedit.msc, and hit Enter. - Navigate to:
Computer Configuration > Administrative Templates > Windows Components > Remote Desktop Services > Remote Desktop Session Host > Licensing. - Open Use the specified Remote Desktop license servers, set it to Enabled, and enter your server's FQDN or IP address (e.g.,
127.0.0.1ordc01.corp.local). - Open Set the Remote Desktop licensing mode, set it to Enabled, and choose Per User.
- Open an elevated PowerShell prompt and execute:
gpupdate /force
Need underlying host licenses? Check our Windows Server 2025 Standard Key or the older Windows Server 2022 + RDS 50 User CALs Bundle.
Certified Microsoft Systems Specialist at MyTechSoftware with over 8 years of experience in enterprise Windows deployment, licensing architectures, and system security.