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When trying to connect to an ArcSDE Workgroup geodatabase, which is also referred to as an ArcSDE geodatabase for SQL Server Express, the following error message is displayed:
"Failed to connect to database. No ArcSDE server license found."
The ArcGIS Server Workgroup authorization used for ArcSDE Workgroup has expired, or the new authorization information was not applied correctly.
Re-authorize the SQL Server Express instance with an ArcGIS Server Workgroup license:
For detailed steps required to update the ArcSDE Workgroup authorization information, follow the instructions in the ArcGIS Desktop or ArcGIS Server help under the topic 'Changing license keys for database servers and their geodatabases'. See the link in the Related Information section below for more information.