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A Veeam Cloud Service Provider's Tenant receives the error message
Service Provider has exceeded the licensed VM count
Tenant job-level error:
Error: Cannot backup this VM because your service provider has reached licensed VM limit.
Veeam Cloud Service Provider may observe the following warnings:
Your license limit has been exceeded by 32 VMs, please reflect the increase in your next usage report.
Your license limit has been exceeded by 32 VMS for more than 60 days. All VMs exceeding the licensed amount will no longer be processed. To manage these VMs, please purchase more licenses.
The Veeam Cloud Connect service provider license is consumed only by active VMs. An active VM is defined as a VM that has been successfully backed up, copied, or replicated by an active (not disabled) tenant with an active lease period (if a lease is configured). The number of restore points created by tenants, or the number of jobs processing VMs, does not affect license consumption. For example, if a tenant processes the same VM with multiple backup jobs, it is still counted as a single active VM.
The total number of active VMs must not exceed the total number of VMs allowed by the license. Based on the number of active VMs, the Veeam Cloud Connect service provider license can be in one of the following states:
Normal: The total number of active VMs does not exceed the licensed limit. Tenants can freely process both existing and new VMs—backing up, copying to the cloud repository, and replicating to cloud hosts.
Grace: If the number of active VMs exceeds the license limit, the license enters the Grace state. Tenants can continue to process existing and new VMs, regardless of the exceeded limit. VMs exceeding the license limit are tracked separately for future FIFO (First In, First Out) handling. If free license slots become available (e.g., when older VMs are no longer protected), VMs from the FIFO list occupy these slots in FIFO order.
The Grace state is valid for 60 days. After the 60-day period, the license shifts to the Post Grace state.
Post Grace: If the grace period expires and the number of active VMs still exceeds the license limit, the license enters the Post Grace state. In this state, tenants can only back up, copy, or replicate VMs that were already being processed during the Normal or Grace states. Any additional VMs beyond the licensed limit will no longer be processed.
The license can return to the Normal state if the service provider obtains and installs a license with a higher VM count.
Recovery: During the Grace period, if the number of active VMs falls within the license limit, the license enters the Recovery state. In this state, tenants can continue to back up, copy, and replicate VMs to the cloud.
The Recovery state lasts for 1 day. After 1 day, Veeam Backup & Replication evaluates the license state:
The number of active VMs in the Veeam Cloud Connect service provider license can be reduced for one of the following reasons:
To reduce the number of managed VMs in a Hosting license, the SP can do the following:
If this KB article did not resolve your issue or you need further assistance with Veeam software, please create a Veeam Support Case.
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