There could be multiple reasons why the server name is not getting recognized so here are a few points which can be taken care of if the error "License server machine is down or not responding. (-96,7:11001 "WinSock: Host not found (HOST_NOT_FOUND)")" is encountered.

1. Make sure the server is accessible , ping the server to see the response.
2. The port should be open /listening and not blocked by the firewall.
3. Add the the server name and IP address to the file C:\Windows\System32\drivers\etc\hosts in Windows.
4. IP address can be specified in place of hostname if feasible .
5. Execute the below commands to check if there are any connectivity issues

   Ping # <Hostname_of_license_server>
   # Ping <IP_address_of_license_server>
   # Telnet <IP_address_of_license_server> <Port_of_lmgrd>
   # Telnet <IP_address_of_license_server> <Port_of_vendor_daemon>
   # Lmstat -A -C <Port Atto Hostname_of_licsvr>
   # Lmstat -A -C <Port Atto Ipaddr_of_licsvr>

6. Hostname resolution should be in place.
7. Perform lmreread to make sure correct configuration is taken into consideration .

The -96 error occurs when the license server is not started or the license server cannot be accessed (due to a network failure, etc.)