One can configure a Windows Server computer to be a KMS host computer by installing the Volume Activation Services role and then running the Volume Activation Tools wizard. To activate volume-licensed versions of Office, including Project and Visio, one must have a Key Management Service (KMS) host computer. This technology is also used in Microsoft Office products during activation. The process has been successfully circumvented on multiple occasions. The procedure has been met with significant criticism by many consumers, technical analysts and computer experts, who argue that it is poorly designed, highly inconvenient and ultimately does nothing to prevent software piracy. The procedure enforces compliance with the program's end-user license agreement by transmitting information about both the product key used to install the program and the user's computer hardware to Microsoft, inhibiting or completely preventing the use of the program until the validity of its license is confirmed.
Microsoft Product Activation is a DRM technology used by Microsoft Corporation in several of its computer software programs, most notably its Windows operating system and its Office productivity suite. DRM mechanism used by Microsoft The Activation Wizard in Windows XP