Hyper Visor Activation R720, 2012 Server Standard (Not R2)

Hi - I am trying out the Microsoft Hyper Visor role.  This server is on a closed network with no internet access (redundant I know, but I wanted to get the point across).  I installed a guest under the host 2012 OS (which is running non R2 version) and went to activate it using the activation key on the box.  However it wants me to activate the system the usual way by connecting to MS or calling in.

Is this correct?  I have to walk through the typical activation sequence for a hypervisor client of the same ilk as the host?  Just want to confirm it before I spend the phone time activating the systems.

Thanks

van derrick

(there is a similar post in this forum, but it doesn't answer the question about non-connected systems)