First you say, "Workstation which is installed and licensed on a Host." and then you say, "I have installed workstation then on a client".
When you say the later "...on a a client" are you referring to a VM or another Physical Machine?
The question is....Do we need a license for all users that would have Workstation installed interacting with this host?
VMware Workstation is licensed per seat, meaning one computer with one install with one license and any additional installs of the VMware Workstation application require additional licenses.
If so how is this regulated? Is it a case where you need to keep track of this yourself like Microsoft CALs? I assume you can only use the licese key on one installation but it does not stop you installing again. correct?
Honor System, internally on your end however VMware Workstation can Phone Home, as the saying goes, and I'd assume VMware performs some form of auditing/tracking.
Is there a limit of how many users could potentially access this host? Say we had 10 people ccessing at one time? Can Workstation handle this ? ( assuming resources are available on the host )
The limit of concurrent connections will be determined by the Host OS. As to performance that all depends on what resources the Host has and how resources are configured.
You might want to consider using vSphere Hypervisor instead of VMware Workstation.
