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I have a question that probably seems kind of stupid but I can't find a definitive answer from google.

In Microsoft's DHCP Server service, and if you are running AD, you can "authorize" a DHCP server.

I'm guessing that means that if a DHCP server is not authorized, and joined to the domain, it won't respond to DHCP requests correct?

Also, does it need to have it's name in DNS for it to actually function properly? For example dhcp.example.com -> 192.168.1.2
I know it's recommended, but what are the ramifications if you don't have it?

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Although it is not recommended, you can use a stand-alone server as a DHCP server as long as it is not on a subnet with any authorized DHCP servers. When a stand-alone DHCP server detects an authorized server on the same subnet, it automatically stops leasing IP addresses to DHCP clients Please check this link for more details in this topic..

DNS is not necessary for DHCP service. But it's critical service if you are running AD so most probably any member server/domain controller will [re]register yourself in DNS while join domain or Netlogon service restart

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