What is the difference between Stand-Alone and Network licenses?

Question

What is the difference between Stand-alone and Network licenses?

Answer

Under a Stand-alone license, the software is constrained to a certain host. A license is needed for each computer the software will be installed on.

In Network license mode, a pool of licenses is available on the server, for use in any computer on the network. You only need to have licenses for the maximum number of simultaneous users expected, not for each computer where the software will be installed. 

A great advantage of the Network licenses is that you only need to install and activate licenses on the Server, not on the workstations. This allows you to change or upgrade the computers more easily, without having to worry about reactivating licenses.