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My experience is that it's determined from the OS by the LANDesk inventory scanner. I've seen e.g. a Dell Optiplex desktop installed with Windows Server 2003 or 2008 being identified as a "Server" in LANDesk.
The services running on the device can also affect the device type. E.g. if the "Server" service on Windows 7 is running then the device type is set to "Workstation", but if the "Server" service is not running then the device type is set to "Machine" instead.
Thank you for your help. This helps a lot, but you are not 100% sure?
I don't have any official documentation to prove it if that is what you mean
Though, I'm sure that it's determined by the LANDesk inventory scanner because if you save the scan to a file (/O parameter when using ldiscn32.exe), you'll find a line that says e.g. "Type =Workstation".
The "Server" type when using a server OS on desktop hardware and "Workstation" vs "Machine" is something I've tested and verified in our environment.