Our K1000 is warning us that we only have 18 licenses left.

1) What happens when we hit the limit?

2) How can I go and reclaim licenses from decomm'd machines, is it a time off the network based thing or can I manually reclaim them?

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1) No more new managed devices can be added to your system.
2) Delete unneeded computer records and the licenses available will increase.

Here is an article about archiving to get license counts back:
Answered 05/14/2018 by: RichB
Second Degree Brown Belt

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