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hserver
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A helper program on the user's machine that communicates with the License Server to retrieve licenses. When Houdini is run on an artist's machine, it asks hserver on his machine to get a license. hserver then asks the License Server for a license.
Only one copy / one version of hserver is ever running at one time on any given machine.
On Windows, this program can be started and stopped in Services as HoudiniServer.