The activation servers are hosted by us. There's the option for hosting an instance of LimeLM on your own servers but it's expensive and time consuming. So we don't recommend it.
For the TurboFloat Server instances (the floating license server) there are 2 current options and a 3rd option coming soon:
1. The customer hosts it on their network.2. You host it on your network.3. We host it on our infrastructure (coming soon).