Concurrent licenses. LIcense server on same machine as IS 2016?

[andrewcflex]

I have installed the lmadmin license server on the same machine as I have installed IS 2016.
I have activated a license on this machine.

The "test connection" of the "Specify License Server" dialog fails with "cannot connect"
I have checked that
- lmadmin is running
- port 27000 is being used and is "open"



2-23-2017[09:28:49 AM]: Testing connection to server: 27000@localhost -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 816
2-23-2017[09:28:49 AM]: Setting current directory -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 399
2-23-2017[09:28:49 AM]: Initializing FLEXnet libraries -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 406
2-23-2017[09:28:49 AM]: Installing FLEXnet service -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 412
2-23-2017[09:28:49 AM]: flxActCommonLibraryInit: C:\Program Files (x86)\InstallShield\2016\System\TSConfig_libFNP.dll -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 429
2-23-2017[09:28:49 AM]: Opening TS -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 444
2-23-2017[09:28:49 AM]: Successfully initialized FLEXnet libraries -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 468
2-23-2017[09:28:49 AM]: Not using Borrowed License -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 498
2-23-2017[09:28:49 AM]: lc_new_job returned 0 Job: 4059496 -- File: FlexLicensing\FlexJobManager.cpp, Line: 72
2-23-2017[09:28:49 AM]: Using CheckOutFilterLS -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 645
2-23-2017[09:28:49 AM]: AcquireLicense -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 1220
2-23-2017[09:28:49 AM]: Checkout result = -73 -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 1227
2-23-2017[09:28:49 AM]: Checkout failed, Error LM_LOCALFILTER -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 1256
2-23-2017[09:28:49 AM]: Unable to connect to server: 27000@localhost -- File: FlexLicensing\FlexLicenseManager.cpp, Line: 849
2-23-2017[09:28:49 AM]: CFlexJobManager::FreeCurrentJob -- File: FlexLicensing\FlexJobManager.cpp, Line: 37
2-23-2017[09:28:49 AM]: FreeCurrentJob -- File: FlexLicensing\FlexJobManager.cpp, Line: 64

[andrewcflex]

I installed IS 2016 Premier on another Windows machine, and pointed it at the license server machine, and IS 2016 Premier ran successfully
So it appears IS 2016 Premier cannot be installed on the same machine as the license server.
This is a really annoying restriction and not documented .