How to Activate Remote Desktop Services (RDS) CALs on Windows Server 2022

Introduction

You’ve deployed Windows Server 2022 to enable remote access for your team, configured Remote Desktop Services, and everything appears ready until users attempt to connect and encounter the dreaded message: “The remote session was disconnected because there are no Remote Desktop client access licences available for this computer.” Your server is properly licensed, users need remote access, but without activated Remote Desktop Services Client Access Licences (RDS CALs), nobody can connect beyond the initial 120-day grace period.

This scenario frustrates IT administrators and business owners regularly. The confusion stems from Windows Server licensing’s multi-layered structure: you need a Windows Server 2022 licence for the server itself, Client Access Licences (CALs) for users or devices accessing server resources, and separate RDS CALs specifically for Remote Desktop Services connections. Many assume the base Windows Server 2022 Standard licence includes unlimited remote desktop access it doesn’t. RDS CALs are additional licences that must be purchased separately, installed on an RDS Licence Server, and properly activated before users can maintain ongoing remote desktop connections.

The anxiety intensifies when purchasing RDS CALs through digital channels. Unlike the server operating system itself, RDS CALs exist purely as licence keys without downloadable software. You’re essentially purchasing permission encoded in a 25-character product key to allow remote desktop connections. The concern becomes: how do I know if these digital RDS CAL licences are legitimate? Will they activate properly? What happens if activation fails after the 120-day grace period expires and all remote users lose access?

This comprehensive 2026 guide walks you through everything needed to successfully activate Remote Desktop Services CALs on Windows Server 2022. You’ll learn what RDS CALs are and why they’re required, the difference between Per User and Per Device CAL models, how to install and configure the RDS Licensing role, step-by-step activation procedures for RDS CALs, troubleshooting solutions for common activation issues, and guidance on purchasing legitimate RDS CAL licences from trustworthy sources. Whether you’re an experienced IT professional or a small business owner managing your first Windows Server deployment, this guide provides clear, actionable instructions for establishing properly licensed Remote Desktop Services.

Understanding RDS CALs and Windows Server 2022 Licensing

Before activating RDS CALs, understand what they are and why Windows Server requires them.

What Are Remote Desktop Services CALs?

Remote Desktop Services Client Access Licences (RDS CALs) are licences that grant users or devices the legal right to connect to Windows Server using Remote Desktop Services (formerly Terminal Services).

Key Points:

• Separate from Windows Server licence: Your Windows Server 2022 Standard or Datacenter licence covers the server operating system, not RDS access
• Required for each connection: Every user or device connecting via RDS needs a corresponding RDS CAL
• Grace period limitation: Windows Server 2022 includes a 120-day grace period for RDS connections without activated CALs, after which connections are blocked until proper licensing is in place
• Not required for administrative access: Server administrators connecting for management purposes use the two built-in administrative Remote Desktop connections, which don’t consume RDS CALs

RDS CALs vs. Windows Server CALs

Understanding the distinction prevents licensing confusion:

Licence Type	Purpose	When Required
Windows Server CAL	Grants access to Windows Server resources (file shares, print services, Active Directory)	Every user or device accessing the server for any purpose
RDS CAL	Grants access to Remote Desktop Services sessions	Only users or devices connecting via Remote Desktop Services
Combined Requirement	For RDS connections, you need BOTH	User needs Windows Server CAL + RDS CAL to connect via Remote Desktop

Example Scenario: A small business with 10 employees needs:

• 1× Windows Server 2022 Standard licence (for the server)
• 10× Windows Server CALs (for 10 employees accessing server resources)
• 10× RDS CALs (if all 10 employees connect via Remote Desktop Services)

Total licensing: Server licence + 10 Server CALs + 10 RDS CALs

Per User vs. Per Device RDS CAL Models

Microsoft offers two RDS CAL licensing models with different use cases:

Per User RDS CALs:

• What it means: Licence assigned to individual user
• Flexibility: User can connect from unlimited devices (desktop, laptop, tablet, phone)
• Best for: Users who work from multiple devices or locations
• Example: Employee who connects from office desktop, home laptop, and personal tablet

Per Device RDS CALs:

• What it means: Licence assigned to specific device
• Flexibility: Unlimited users can connect from that device (one at a time)
• Best for: Shift workers sharing workstations, kiosks, or shared terminals
• Example: Manufacturing floor terminal used by different workers across three shifts

Choosing the Right Model:

• Multiple devices per user? Choose Per User CALs
• Multiple users per device? Choose Per Device CALs
• Typical small business (1 user, 1 computer)? Either model works Per User offers more flexibility for remote work

Important: You cannot mix Per User and Per Device RDS CALs on the same RDS Licence Server. Choose one model and purchase all CALs in that model.

Prerequisites for RDS CAL Activation

Before beginning activation, ensure you have these essential components.

1. Windows Server 2022 with RDS Role Installed

Verify RDS Role Installation:

1. Open Server Manager
2. Click Manage > Add Roles and Features
3. Navigate to Server Roles
4. Check if Remote Desktop Services is installed
5. If not installed, add the role before proceeding

Note: This guide assumes Remote Desktop Services is already deployed. If not, install the Remote Desktop Session Host and Remote Desktop Licensing roles first.

2. RDS CAL Product Keys

What You Need:

• Valid RDS CAL product keys purchased from Microsoft or authorized resellers
• Keys for Windows Server 2022 specifically (not Server 2019 or earlier)
• Correct CAL model (Per User or Per Device) matching your licensing decision
• Quantity matching your user/device count

Where to Purchase:

• Microsoft Volume Licensing programmes
• Authorized Microsoft partners
• Microsoft Cloud Solution Provider (CSP) partners
• Reputable digital licence providers (verify thoroughly)

Product Key Format:

XXXXX-XXXXX-XXXXX-XXXXX-XXXXX

(25 characters in five groups)

3. Active Internet Connection

Required for:

• Connecting to Microsoft Clearinghouse for CAL activation
• Validating licence authenticity
• Downloading activation data

Alternative: Phone activation available if internet activation unavailable

4. Administrator Credentials

Requirements:

• Domain Administrator account (for domain-joined servers)
• Local Administrator account (for workgroup servers)
• Permissions to install server roles and modify licensing configuration

5. Server Preparation

Recommended Steps:

• Update Windows Server 2022 to latest patches
• Ensure server date/time is correct
• Verify firewall allows outbound HTTPS (port 443) for licence activation
• Confirm DNS resolution is working properly

Step-by-Step: Installing RDS Licensing Role

If not already installed, add the RDS Licensing role to your Windows Server 2022.

Step 1: Open Server Manager

1. Log in to Windows Server 2022 as Administrator
2. Server Manager opens automatically (if not, click Start > Server Manager)

Step 2: Start Add Roles and Features Wizard

1. Click Manage in top-right corner
2. Select Add Roles and Features
3. Click Next on Before You Begin screen
4. Select Role-based or feature-based installation
5. Click Next

Step 3: Select Server

1. Choose your server from the server pool
2. Click Next

Step 4: Add Remote Desktop Services Roles

1. Scroll to Remote Desktop Services
2. Expand the role (click the arrow)
3. Check Remote Desktop Licensing
4. Click Add Features when prompted
5. Click Next

Step 5: Select Features

1. No additional features required for licensing
2. Click Next

Step 6: Configure RD Licensing

1. Review information about RD Licensing
2. Click Next
3. Confirm installation selections
4. Check Restart the destination server automatically if required
5. Click Install

Step 7: Complete Installation

1. Wait for installation to complete (5-10 minutes)
2. Click Close when finished
3. Server may restart if required

Verification:

• Open Server Manager > Tools > Remote Desktop Services > RD Licensing Manager
• If RD Licensing Manager opens, role is installed successfully

Step-by-Step: Activating RDS Licence Server

Before installing RDS CALs, activate the RDS Licence Server itself.

Step 1: Open RD Licensing Manager

1. Open Server Manager
2. Click Tools in top-right
3. Select Remote Desktop Services > RD Licensing Manager

Step 2: Activate Licence Server

1. In RD Licensing Manager, locate your server in the left pane
2. Right-click the server name
3. Select Activate Server
4. Activate Server Wizard opens

Step 3: Select Activation Method

Choose connection method:

• Automatic connection (recommended): Uses internet to activate
• Web browser: Manual activation via Microsoft website
• Telephone: Phone activation with Microsoft

For most users: Select Automatic connection and click Next

Step 4: Provide Company Information

Microsoft requires this information for activation:

Required Fields:

• Company name
• Last name
• First name
• Country/Region

Optional Fields:

• Email address
• Company address
• City/State/Postal code

Important: Use accurate information. Microsoft may verify for compliance purposes.

1. Fill in all required fields
2. Click Next

Step 5: Complete Server Activation

1. Wizard connects to Microsoft Clearinghouse
2. Activation completes (usually 30 seconds to 1 minute)
3. Success message displays
4. Click Next
5. Do not close the wizard yet (you’ll install CALs in next section)

Troubleshooting Activation Failure:

• Verify internet connection is active
• Check firewall allows outbound HTTPS (port 443)
• Ensure server date/time is correct
• Try web browser or phone activation method instead

The licence server is now activated and ready to receive RDS CALs.

Step-by-Step: Installing and Activating RDS CALs

With the licence server activated, install your RDS CAL product keys.

Continuing from Licence Server Activation Wizard

After completing server activation, the wizard should still be open:

1. On the Licence Programme screen, select Enterprise Agreement (most common for purchased CALs)
2. Click Next

Alternative Path if Wizard Closed:

1. Right-click server in RD Licensing Manager
2. Select Install Licences
3. Start Licence Installation Wizard
4. Select Enterprise Agreement
5. Click Next

Step 1: Select CAL Type

1. Choose licensing model:
   • Per User (for user-based licensing)
   • Per Device (for device-based licensing)
2. Click Next

Critical: This choice must match the RDS CAL product keys you purchased. Per User keys won’t work if you select Per Device, and vice versa.

Step 2: Enter Product Key Information

For each RDS CAL product key you purchased:

1. Click Add
2. Enter the 25-character product key:

   XXXXX-XXXXX-XXXXX-XXXXX-XXXXX

3. The Licence Programme shows “Enterprise Agreement”
4. Enter Quantity (number of CALs this key provides)
5. Click OK

Repeat for multiple keys:

• If you purchased RDS CALs in multiple transactions
• Each key may represent different quantities (5 CALs, 10 CALs, 50 CALs, etc.)
• Add all keys before proceeding

Step 3: Verify and Submit

1. Review all product keys and quantities
2. Verify total CAL count matches your purchase
3. Click Next
4. Wizard connects to Microsoft Clearinghouse
5. Keys are validated and CALs installed (30 seconds to 2 minutes)

Step 4: Complete Installation

1. Success message confirms CAL installation
2. Summary shows:
   • Licence programme
   • Product version (Windows Server 2022)
   • Licence type (Per User or Per Device)
   • Quantity installed
3. Click Finish

Step 5: Verify CAL Installation

In RD Licensing Manager:

1. Refresh the view (F5 or View > Refresh)
2. Click your server name
3. Right pane shows installed CALs:
   • Issued: Number currently in use
   • Available: Number available for assignment
   • Total: Total CALs installed

Example:

• Total: 20 (you installed 20 RDS CALs)
• Issued: 5 (5 users currently connected)
• Available: 15 (15 CALs available for new connections)

Congratulations! Your RDS CALs are now activated and ready to service remote desktop connections.

Configuring Remote Desktop Session Host to Use Licence Server

After activating RDS CALs, configure your RD Session Host to use the licence server.

Step 1: Open Group Policy Editor

On the RD Session Host server:

1. Press Windows key + R
2. Type gpedit.msc and press Enter
3. Local Group Policy Editor opens

Step 2: Navigate to RD Licensing Policy

1. Expand Computer Configuration
2. Expand Administrative Templates
3. Expand Windows Components
4. Expand Remote Desktop Services
5. Expand Remote Desktop Session Host
6. Click Licensing

Step 3: Configure Licensing Mode

1. Double-click Set the Remote Desktop licensing mode
2. Select Enabled
3. Under Options, choose:
   • Per User (if you installed Per User RDS CALs)
   • Per Device (if you installed Per Device RDS CALs)
4. Click Apply
5. Click OK

Step 4: Specify Licence Servers

1. Double-click Use the specified Remote Desktop licence servers
2. Select Enabled
3. Click Show button next to licence servers list
4. Enter your licence server name or IP address
   • Format: servername.domain.com or 192.168.1.10
   • For local server: localhost or server’s own name
5. Click OK on Show Contents dialog
6. Click Apply
7. Click OK

Step 5: Apply Group Policy

Force policy update:

1. Open Command Prompt as Administrator
2. Run: gpupdate /force
3. Wait for update to complete
4. Restart Remote Desktop Services:

   net stop TermService
   net start TermService

Verification:

• Users should now successfully establish RDS connections
• RD Licensing Manager shows CALs being issued as users connect

Troubleshooting Common RDS CAL Activation Issues

Problem 1: Licence Server Activation Fails

Error: “The Remote Desktop licence server cannot contact the Microsoft Clearinghouse.”

Common Causes:

• No internet connection
• Firewall blocking outbound HTTPS (port 443)
• Proxy settings interfering with activation
• Incorrect server date/time

Solutions:

Solution A: Verify Internet Connectivity

1. Open Command Prompt
2. Run: ping microsoft.com
3. Should receive replies (if not, check network connection)

Solution B: Check Firewall Rules

1. Ensure outbound HTTPS (TCP 443) is allowed
2. Temporarily disable firewall to test (re-enable after)
3. Add exception for RD Licensing Manager

Solution C: Use Alternative Activation Method

1. Select Web browser or Telephone activation
2. Follow on-screen instructions
3. Web browser activation uses different network path
4. Phone activation bypasses internet entirely

Problem 2: RDS CAL Installation Fails with Invalid Product Key

Error: “The product key is not valid” or “Product key does not match the selected licence programme.”

Common Causes:

• Typo in product key entry
• Wrong CAL type selected (Per User vs. Per Device mismatch)
• Key for wrong Windows Server version (Server 2019 vs. 2022)
• Invalid or improperly sourced key

Solutions:

Solution A: Verify Key Entry

1. Double-check each character carefully
2. Distinguish between 0/O, 1/I/l, 5/S
3. Copy-paste key if provided digitally
4. Remove extra spaces

Solution B: Confirm CAL Type Match

1. Verify product key documentation states correct type
2. Per User keys only work with Per User selection
3. Per Device keys only work with Per Device selection
4. Contact seller to confirm key type if uncertain

Solution C: Verify Server Version

1. Ensure keys are specifically for Windows Server 2022
2. Server 2019 RDS CAL keys won’t work on Server 2022
3. Check purchase documentation for version specification

Solution D: Contact Seller

1. If key consistently fails, it may be invalid
2. Request replacement from legitimate sellers
3. Provide error messages and order details
4. Initiate refund if seller unresponsive

Problem 3: Users Still Cannot Connect After CAL Activation

Error: “The remote session was disconnected because there are no Remote Desktop client access licences available.”

Common Causes:

• RD Session Host not configured to use licence server
• Group Policy not applied
• Licensing mode mismatch
• All CALs already consumed

Solutions:

Solution A: Verify Configuration

1. Check Group Policy settings (Section: Configuring RD Session Host)
2. Ensure licensing mode matches installed CALs
3. Confirm licence server specified correctly
4. Run gpupdate /force to apply policies

Solution B: Check CAL Availability

1. Open RD Licensing Manager
2. Verify Available CALs > 0
3. If all CALs issued, purchase additional CALs
4. Review Issued CALs list for inactive connections consuming licences

Solution C: Restart Remote Desktop Services

net stop TermService
net start TermService

Solution D: Check Licence Server Discovery

1. On Session Host, open Registry Editor
2. Navigate to: HKLM\SYSTEM\CurrentControlSet\Control\Terminal Server\RCM\GracePeriod
3. Delete the GracePeriod key (forces licence server rediscovery)
4. Restart server

Problem 4: CALs Show as “Not Activated” or “Temporary”

Issue: CALs appear in RD Licensing Manager but show temporary status.

Cause: Licence server activated but CALs not properly installed through wizard.

Solution:

1. Right-click server in RD Licensing Manager
2. Select Review Configuration
3. Verify server activation status shows “Activated”
4. If CALs show temporary, re-run Install Licences wizard
5. Enter product keys again
6. Ensure successful connection to Microsoft Clearinghouse

Frequently Asked Questions (FAQs)

1. What is the “Grace Period” for Windows Server 2022 RDS?

Windows Server 2022 provides a 120-day licensing grace period. During this time, users can connect to the Remote Desktop Session Host without a verified license server. However, once this period expires, all remote connections will be blocked until a Licensing Server is activated and valid RDS CALs are installed.

Pro Tip: You can check how many days are left by running this command in PowerShell: wmic /namespace:\\root\CIMV2\TerminalServices PATH Win32_TerminalServiceSetting WHERE (__CLASS !="") CALL GetGracePeriodDays

2. Should I choose “Per User” or “Per Device” CALs?

This depends on your specific business structure:

• Per User CALs: Best if your employees use multiple devices (laptop at home, desktop at the office, tablet on the road). The license is tied to the user’s Active Directory account.
• Per Device CALs: Best for shift-work environments (e.g., a kiosk or a shared workstation in a warehouse). The license is tied to the physical hardware, allowing an unlimited number of people to use that specific device to connect.

3. Can I install Windows Server 2025 CALs on a 2022 Server?

No. In the Microsoft licensing ecosystem, RDS CALs are backwards compatible but not forward compatible.

• You can install 2022 CALs on a 2019 or 2016 Licensing Server (if the server itself is upgraded).
• You cannot install 2025 CALs on a Windows Server 2022 Licensing Manager. If you mistakenly bought 2025 keys, you will need to contact your reseller to downgrade them to 2022 versions.

4. Why is my RD Licensing Diagnoser showing “No license server available”?

This is a common error even after you have installed the CALs. It usually happens because the Licensing Mode hasn’t been defined in the Group Policy. To fix this:

1. Open gpedit.msc.
2. Navigate to: Computer Configuration > Administrative Templates > Windows Components > Remote Desktop Services > Remote Desktop Session Host > Licensing.
3. Enable “Use the specified Remote Desktop license servers” and enter your server’s IP or FQDN.
4. Enable “Set the Remote Desktop licensing mode” and match it to your purchased CAL type (User or Device).

5. Do I need an Active Directory Domain for RDS CALs?

• Per Device CALs: Can work in a Workgroup environment without a domain.
• Per User CALs: Strictly require an Active Directory Domain. The licensing server needs to track the user object in the directory to assign the license. If you are not using a domain, you must use “Per Device” licensing.

6. What do I do if my License Server shows “Reactivation Needed”?

If you have recently made hardware changes or restored the server from a backup, the activation status might become “corrupt.”

1. Open the RD Licensing Manager.
2. Right-click your server name.
3. Select Advanced > Reactivate Server.
4. Follow the wizard (usually via the Automatic/Internet method) to refresh the connection with the Microsoft Clearinghouse.

7. How can I track which users are using my CALs?

In the RD Licensing Manager, you can right-click on your installed license pack and select “Create Report” > “Per User CAL Usage.” This generates a CSV file showing exactly which Active Directory users have been issued a license and when they will expire.