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Error: Error creating this geodatabase. This application is not licensed to perform this operation

Error Message

With ArcGIS Server Workgroup, a workgroup geodatabase can be created using ArcMap and can be accessed by up to 10 users at a time. In some instances, when creating a workgroup geodatabase, the process fails and returns the following error:

Error:   
Error creating this geodatabase. This application is not licensed to perform this operation

Cause

The following are possible causes for this issue:

  • The SQL Server instance version is not compatible with the installed ArcGIS version.
  • The SQL Server instance is not authorized with an ArcGIS Server Workgroup license.

Solution or Workaround

Depending on the cause, select one of the options below to resolve this issue:

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