If the connection between the license server and VirtualCenter 2.0 Server is lost:

A.
there is no impact because licenses are stored and configured per host when using a license server.

B.
VMs will continue to run, but after a grace period ends, they cannot be powered back on until connectivity with the license server is restored.

C.
ESX Server hosts can be configured and additional hosts added, but no VMs can be powered on until connectivity with the license server is restored.

D.
all VMs will power off if connectivity is not restored within a 48 hour grace period. Hence, we recommend installing the license server on the same machine with the VirtualCenter Server.