I'm using Sophos UTM Home Edition and under Endpoint Antivirus license, it says the following (attached). What is meant by licensed users and free users?
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The two free users are by default with the UTM installation. The additional 10 license are from your UTM License file that you have loaded, which was given after Endpoint was released for home use licensing. It's essentially just what was added after the Endpoint release in UTM.