Houdini License Server is a program you must have in your system to run Houdini, a 3D procedural software for VFX, animation, rigging, modeling, look development, and more. You can load this program into the operating system with the help of the Houdini installer.
Make sure not to edit the system files that register sesinetd to run at startup. As an alternative, you can insert command line options you would like to use in a sesinetd.options file. The file locations vary according to the operating systems.
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To learn how to set up licensing in your use case, refer to this installation and licensing guide.
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