Key Management Service or KMS is a part of Volume Licensing for Windows Activation. When activating your Windows, if you get an error code 0xC004F038 with the message—
The Software Protection Service reported that the computer could not be activated. The count reported by your Key Management Service (KMS) is insufficient. Please contact your system administrator.
Error code 0xC004F038 means that the KMS has failed to meet the minimum criteria.
Count reported by Key Management Service (KMS) is insufficient – 0xC004F038
Since these keys belong to KMS batch, it has to be activated on a minimum number of devices. You cannot simply activate it on one single computer.
When using KMS, there should be a minimum of 5 computes already activated, and for Windows Servers that 25. This also means that at the start, these are the minimum computers that should get activated. If you are activating on a single device, and minimum devices have not been activated, it will not work.
As an IT admin, you can use the SLMGR script to activate multiple computers. If you are unsure, then execute the following command on an elevated command prompt to get the current count on the KMS host:
By default, /dli displays the license information for the installed active Windows edition.
Specifying the <Activation ID> parameter displays the license information for the specified edition associated with that Activation ID if you use the All as the parameter displays license information for all applicable installed products.
So this message is not an error code but more of a warning message that a certain condition has not been met. This can be resolved only by an IT admin.
However, if you as a consumer are getting this message, it means you don’t have the right key. KMS and MAK keys are supposed to be used in business and enterprise.