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Full feature free edition is available for only first 3 VMs added in the first backup job. So, in the first backup job, you can add up to 3 VMs. If you add more than 3 VMs in the first backup job, those VMs will be failed with "No valid license available" error. If you would like to backup more than 3 VMs, you need to create a new backup job for other VMs. For rest of the VMs, you will get limited features. Refer this link to know more about the feature availability.

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