Under the Key Management Service (KMS), each installed product (Windows and Office) will attempt to check its own activation state on a regular schedule that looks like this:

Install product. On successful installation, a 30-day Grace period begins.

Grace period

• Product has full functionality during grace period.
• Product attempts to activate through KMS server every two hours.
• On successful activation, move to Licensed state.
• If 30 days in Grace period pass without a successful activation, move to Reduced Functionality state.

Licensed state

• Product has full functionality during licensed state.
• Begin with 180 days remaining in licensed state.
• Product attempts to re-activate through KMS server every seven days.
• On successful reactivation, reset licensed state to 180 days remaining.
• If 180 days in license state pass without a successful reactivation, move to a 30-day Grace period.

Reduced Functionality state

• Users will experience these significant product limitations:

Windows

• User logins last only an hour. Users will need to log in every 60 minutes.

• Premium features such as Aero Glass, ReadyBoost, and BitLocker are not available.

Office

• You cannot create new documents.

• You can view and print existing documents, but not edit them or save them.

Technical support providers or network administrators should use the manual activation method. If successful, this will return the product to the Licensed state.