License key with "Server" as a unit of measure means that if the magnitude is for 1 Server and that Windows server has 3 SQL Server Instances residing on it, then you can monitor all 3.
License key with the "Monitored Instance" as a unit of measure means that but if the magnitude is for 1 Monitored Instance and that Windows server has 3 SQL Server Instances residing on it, then you can only 1 of the 3 SQL Server Instances.
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