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The License Server is usually installed on one or more machines within an office network that are dedicated to running license servers or managers for various software. However, you could also run the License Server on any workstation machine that's used by artists. For example, in a 20-user environment on the same internal network, the License Server could be installed on two or three of the 20 workstations, all of which should be activated with the same Chaos account. Then, all 20 of those workstations will need their Chaos products configured to connect to the IP addresses of those two or three machines as the primary and alternate server(s) as shown in the image below. This UI is accessed by running the Manually Change the License Settings Server IP application included with your product's installation.
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