You have a Node-Locked license (purchased or evaluation)

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A node-locked license is a license that runs only on one specific machine and enables the software only on that machine. You should select "local" in this case, browse for the license file sent to you by Sonnet, then click OK. This enables your software.

This license requires a license manager. The license manager will start automatically when you run the software. You may optionally start the license manager manually. For instructions on how to start the license manager on a Windows platform, see Starting the FLEXnet License Manager

 in the Windows Installation manual. For instructions on how to start the license manager on a LINUX platform, see Starting License Manager in the LINUX Installation manual.