RDS 2016 & 2019 in a Workgroup or With Active Directory – Licensing Failure

** Update 10/4/2018 –  I just tested out RDS installation on Server 2019 in workgroup mode and the same configuration issues will be experienced and the process below will get you through it.  -Scott **

Ok, so if you are here – you already know this is not a recommended configuration for Remote Desktop Services, but you want to do it anyway.  With my experience in Technical Support with a now very large computer company, your odds of succeeding in this endeavor if things go wrong are about 50/50, but let’s get you some info to assist and get you the best odds of winning.

Remote Desktop Services (RDS) is designed to be in a Microsoft Active Directory integrated environment, meaning there is a writable DNS server in the environment and an AD User/Service database to pull environment information from.  Along with the needed AD pieces, there is also the issue of the RD Connection Broker service won’t install, due to the lack of permissions – which means you do not have an RD Management interface with which you can configure your RD environment.  So given these fail points, without taking other steps you will wind up with an RD environment that cannot be accessed due to RD Licensing configuration failure (yeah, you do need RD licenses, too).

Here’s what you will see in EventViewer:System logs:

And when you go to RD Licensing Diagnoser, you’ll see this:

Licensing mode for RDS Host server is not configured resized 600

And looking in RD Overview in Server Manager, you get:


Since you don’t have the GUI to work with to configure RD Licensing with, we’re going to have to go about this differently.

** Also, if you installed RDS on a system with Active Directory installed, you may, or may not, get the Overview GUI installed on your server (error pic above).  Even if you do have the GUI installed in this scenario – it’s almost a 100% chance that the Licensing Configuration through the GUI will not work.  The tweeks below work to fix RD Licensing for both Workgroup and AD scenarios.

Open up Regedit and navigate to: HKLM\Software\Policies\Microsoft\WindowsNT\TerminalServices

You’ll need to add two keys:

  • LicenseServers  (string value), with a value of your FQDN of the License Server instance.  One option instead of using a FQDN is just use “localhost” or “” to point the RDS instance to look on the workgroup server for the RD Licensing Instance (as long as RD Licensing is on the same workgroup system).
    • **edited/added the loopback IP address here 2/6/19**
  • LicensingMode  (32-bit DWord), with one of 2 values:  2 – for Per Device mode  or 4 – for Per User mode

Once you have those set, restart the RD Licensing Service and RD Session Host Service and then re-run the RD License Diagnoser – it should run clean now.

** Other important note here…  An RD Licensing instance can handle Per User and Per Device licenses and hand them out with no problem to multiple RD Session Hosts, but a single RD Session Host can only ask for 1 type of RD License – either Per User or Per Device.  This is a common issue where Per User licenses are purchased and installed, but the Default licensing mode configuration for RDSH is “Per Device”.  So, RD will hit your RD license host and ask for a Per Device licenses, which it doesn’t have.  Changing the licensing mode to “Per User” fixes the issue.

Good lucks out there!  Comments??

16 thoughts on “RDS 2016 & 2019 in a Workgroup or With Active Directory – Licensing Failure

  1. Manuel

    I’ve tried it with the final WS 2019 and the licensing diagnose is not showing problems. But if a user tries to login he’s getting a blue banner with the following message: “REMOTE DESKTOP LICENSE ISSUE” “There is a problem with your Remote Desktop license, and your session will be disconnected in 60 minutes, Contact your system administrator to to fix this problem.”

    Do you know a fix for this problem?


  2. scooterx01

    Hi Manuel,
    Apologies for the slow reply, wordpress just notified me today that your comment was out there. Without seeing the systems, my first question would be: are there 2019RDS CALs installed? It would seem proper for MS to continue the “90-day grace” on installing CALs to make sure the RD implementation is good before applying licensing.
    Also, any errors in the standard System/App logs or the RED logs? EventViewer:Applications and ServicesLog:Microsoft:{anything RDS/TS related}.
    – Scott


    • Manuel

      Hello Scott,
      I’ve checked the event log, but there is absolutely nothing useful. Licensing doesn’t show any error. I’ve installed one 2016 and one 2019 CAL (through our SPLA aggreement) but the licenses are only showing as available and not as assigned.
      Regards, Manuel


      • scooterx01

        Hmmm… Maybe MS actually did make some changes to RDS2019… Questions:
        – What type of licenses were installed: PerUser or PerDevice? (licensing mode mismatch? I’m sure you’re on it, but checking the box here…)
        – Is the RDS server in a workgroup? PerUser licenses aren’t tracked when in that configuration
        – Has the workstation you are using to connect to the RDS server been used to connect to any other RDS servers? (cached key?)
        – No errors/warnings on the Client side logs after connecting regarding RDS licensing? (not like MS to not log problems somewhere)
        – Scott


      • Manuel

        -) I’m using per-user-licenses, the server is also set to per-user-mode
        -) the server is in a workgroup
        -) i’ve tried it with multiple clients
        -) there are no errors and no warnings


      • scooterx01

        Hi Manuel, just getting back around to looking at this… Verfying: you have 2019 PerUser licenses installed? and can you do a snip of the RD License Diagnoser screen and paste it here?


      • Chris

        Same here, when LicensingMode is 4 (Per User), but it is ok, when LicensingMode is 2 (Per Device). (Windows 2019 Server in workgroup mode)
        I think, than MS prevent to use RD User CALs in W2019 SRV without AD …


  3. Pun~

    Same issue with 2019 Workgroup RDS licensing.

    “REMOTE DESKTOP LICENSE ISSUE” “There is a problem with your Remote Desktop license, and your session will be disconnected in 60 minutes, Contact your system administrator to to fix this problem.”


  4. Ale

    Hi, Thank you for your post.

    I’m trying to set a License Server not in domain with an RD Server in domain. Both WinServer 2016. RD Server doesn’t have access to DNS.

    License Diagnoser shows all green. I can see the licenses installed in the Server, but licenses are never issued.

    Just to be super clear:

    1. The 2 registry keys (LicenseServers and LicensingMode) are supposed to be added on the RD Server, correct?
    2. In a comment above, you mentioned 2 logging locations: “Also, any errors in the standard System/App logs or the RED logs? EventViewer:Applications and ServicesLog:Microsoft:{anything RDS/TS related}.”. Can you specify:

    I see 3 warnings (Event Id: 226) in the client on TerminalServices RDPClient/Operational. Saying an error was encountered when transitioning from TsSslStateHandshakeInProgress to TsSslStateDisconnecting. States varies between events.

    On RD Server I see a few warnings “TCP socket WRITE operation failed, error 64” event (143) on Microsoft-Windows-RemoteDesktopServices-RdpCoreTS/Operational

    Nothing else stands out.
    Thanks for your help!


  5. Ale Salas

    My previous comment is still being moderated. So i’ll post a separate one.

    I’m working with Win Server 2016. I finished the setup and licenses are still NOT being issued.

    One thing to note is that when I connect I do NOT receive the warning that no RD License Server is available, which is good. License Diagnoser shows no errors.

    Have you encountered this issue?


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