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Power Designer License question

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I downloaded Power Designer from Service market place. When I am trying to request for license, it is asking for 2 options, Served License and Un-served license.

 

When I pick Served license, it is asking for Server Host ID and Host Name, and for Un-Served License , it is asking for Node Host ID and Host Name.

 

Can someone please explain me the difference?

 

I am assuming 1st option, I will store the license on a server and 2nd option, I will keep the license in local machine. Is it correct?

 

Why do I need to mention the server hostname or Host ID of the local PC while regenerating the license it self?


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