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Can I use local repo for updating production machines for RHEL

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If I create a local repo for RHEL patch updates, Can I use it for my production machines also. If I refer to the local repo for updates from the nodes, Then how would Redhat evaluate the license?

Also, can I use the same repo for updating the RHEL instances in the AWS cloud? Does it have any advantages and limitations?

Please help me to find answer to these questions. Thanks in Advance!!!

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