Dynamic Host Configuration Protocol (DHCP) is used to automatically assign IP addresses, subnet masks, default gateways and other network configuration options to clients on a network. DHCP reduces network configuration workload. It uses a four step packet exchange process during the initial IP address lease and will attempt renewal at 50% and 87.5% of the lease time. DHCP servers must be authorized in Active Directory to lease addresses. Scopes are configured to define address ranges for clients, reservations assign specific addresses by MAC address, and relays allow a single DHCP server to service multiple subnets.