"Why would a customer be buying 300k seats for 100k machines? My assumption is they buy an ERAS license once for each new machine. That's it."
If the refreshment cycle is 3 years, with your model, the customer would have to buy 300K Eras licenses in 9 years, although he only has 100k machines in the company...
You are treating a server seat like a CLIENT software. Look at MS Server 2008. If you never change the Server OS, you will have to buy 100K seats and you will have them FOREVER, even when you refresh you client machine on a yearly basis.
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