hqn_lsd can be run on any machine, either stand-alone or within a network. On start-up, it looks for permit files in one or more defined directories. See Location of license permit files.
Each permit file contains a list of machine-specific details for one or more machines. This list constitutes the server domain of the product permits defined in the rest of the permit file. Machines are specified by a unique ID number (the source of which depends on the kind of machine) and an Internet address. The rest of the permit file contains permit details for one or more products.
If hqn_lsd reads a permit file in which the server-domain listing contains the host it is running on, then it is enabled to serve licenses for the products to which the permit relates. Whether it
will
serve licenses for those products depends on the type of the server domain.
If the server domain contains a single host, hqn_lsd will always serve licenses for products having that domain. In this case, if the product is to be run solely on this host, nothing else needs to be done: just start hqn_lsd on this host and the licensed applications can be run (depending on the permit details of each product). If the product is to be run on other machines the server host needs an alias as described in Setting up domains with more than one host.
The case of multiple-host server domains is described below.
LispWorks Guide to the License Server - 16 Feb 2015