Problem

When migrating Jira Server (standalone) to Jira Data Center you need to apply the Data Center license to convert your instance to Date Center mode. 

If you also have Jira Service Management installed and you apply the Data Center license of of one Jira product (e.g. Jira Service Management) before applying the license of another Jira product (e.g. Jira Software), you would notice the below error: 

Diagnosis

Diagnostic Steps

• Install Jira Software and Jira Service Management

• Now move to Jira Data Center by applying license to Jira Service Management first 
• You will run into the above reported error
• After this, if we try to apply the license to Jira Software then also the above error is noticed and license will not get updated.
• This will be a blocker to migrate the Jira Server to Jira Data Center.
  
  

Cause

Before version 8.10, Jira will not allow to have a Data Center license applied, while the other product is still having Server license installed.

Workaround

Only follow these steps if you are migrating from Jira Server to Jira Data Center. 

• Navigate to Administration →  Application →  Version & Licenses
• Go to Jira Software section and remove the license by clicking on the delete icon as shown below:
  

• It will give you pop window like below click on Remove

• Repeat the same steps for Jira Core if Jira Core is also configured with a license
• Now update the Jira Service Management license for Data Center.
  
• Once it is successfully applied, you can update Jira Software and Core License by clicking on Paste License as shown below:
  
  
  

Resolution

This was resolved in Jira 8.10, where a license update screen (wizard) appears and requires the administrator to enter Data Center licenses for both Jira Sotware and Service Management at the same time. More details here: Converting Jira Server licenses to Data Center before and after Jira 8.10