Setting up Floating License on Remote Server

This is mostly all described in http://www.altera.com/literature/manual/quartus_install.pdf

1) Both the remote server and the local machines need to have license files.

2) The server needs to run the flexlm software (lmgrd, alterad etc.)

3) The local machines need to have Quartus told what license file to use.

The remote server license file sounds like what you have already completed, and maybe have working and don't need to touch.

The local license file you have not mentioned, and sounds like the piece you are missing. It is how you accomplish the task of telling Quartus where the license keys are.

Create a simple two-line license.dat on your local machine:

SERVER 230954-web1 002219335395 1800
USE_SERVER

On the License Setup dialog box, if you still aren't seeing your licenses show up, go ahead and try to replace "230954-web1" with it's IP address and try again.

To answer some of your questions:

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How do we need to edit the license file and configure our local machines so that we can access the floating license in its remote location? Do we replace the host name with the IP address (it's a static address)? And if so do we need to modify the altera online license information with this new host name as well?

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You do not need to modify the altera online license information. It sounds like you just need to finish configuring your local machines to correctly connect to the remote machine license server.

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Do local machines need the lmgrd, lmtools, lmutil, installed as well? How do they need to be configured if so?

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They are already installed as part of Quartus, and no they do not need to be configured. Quartus itself needs to be configured on the Tools->License Setup... dialog box.