Many large organizations need to have separate license managers for their remote locations and departments. Due to network constraints, it is recommended to setup a Child License Manager that consumes its licenses from the Parent License Manager. The instructions provided describe how to set up a Child License Manager from a Parent license server.
Configuring the Child License Manager is similar to authorizing a typical License Manager 10 system. The only difference is that a Child License Manager gets its licenses from an internal system versus authorizing from Esri.