Placement of license certificates depends upon the model you have.
- For the SCL model, place license certificates in or above the same NDS® context as the server that you are licensing. Some policies require that certificates be close to the requesting entity. Also, the server must be running NLSLSP.NLM.
- For the UAL model, place license certificates in or above the users' NDS context.
- Smaller companies can place license certificates at the topmost Organization container. Companies with more complex NDS trees can place license certificates at the Organizational Unit containers beneath [Root].
- If you have a remote site and a WAN link, place a license certificate in the remote site's context.
Scenario: Main and Remote Sites. The KwinTel Company has 4,600 users: 3,600 at the main site and 1,000 at a remote site. In the NDS tree, the Organization container is KwinTel and the remote site is an Organizational Unit container named Venture.

Instead of purchasing one certificate for 4,600 users, the network administrator purchases two certificates:
- A 3,600-license unit certificate for the main site, installed in the KwinTel context
- A 1,000-license unit certificate for the remote site, installed in the Venture context
With these two certificates, the licensing service does not have to go across a remote link to get a license unit from a certificate.