Hey Don,
>> "In a previous discussion (I can't remember if it was here or I read it in the blog), it was suggested that developers look at providing the host infrastructure for TFS themselves, if clients object to installing TFS bare metal on their own server (i.e. because we exclude VM use)."
Yes, that's a possibility. Another possibility (coming later 2017, early 2018) is customers spinning up instances of the TFS hosted on our infrastructure. It will be cheaper thant other hosted options and end-users will have full control.
>> "So, we are looking at precisely that, and wondering how scalable this solution is. In particular I'd like to know if TFS has the same limitation that TurboActivate does, i.e. that you can't activate two different product keys on the same PC?"
Correct. At least for any one product version. Multiple TFS instances can be activated and installed on a machine if they're from separate product versions.
>> "Is this possible?"
No, not currently. You would need to spin up separate VMs for each TFS instance of the same LimeLM product version.