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FlexLM software is installed on a machine that acts as a license server by issuing a license to any client computer that requests one. If the number of user requests exceeds the number of floating licenses purchased, a user will need to wait until one of the active FME users closes FME on their computer so that the FME license is returned to the license server.
Example: Ten people need to use FME but only five people will likely need to be using the software at the same point in time. FME is installed on each user's computer. Any workstation can run FME, but only a maximum of five workstations can access FME at any one time. If a sixth person tries to use FME, he will have to wait until one of the first five users has finished using the application.