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Microsoft Office Licenses

How are you dealing with Microsoft Office licenses for an environment where people with laptops connect to a terminal server where Office is installed? Office is also installed on their local desktops. How would the licensing be applied?

Thank you in advance.
Microsoft OfficeIT Administration

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MM-inquiries

8/22/2022 - Mon
Brad Bouchard

You have to have a license for each user that connects to the terminal server even if they have a license on their desktop or laptop that they use to connect with.
Brad Bouchard

This will give you what I said from Microsoft directly:

http://www.dabcc.com/article.aspx?id=5448
ASKER
MM-inquiries

Do you mean two licenses for the same user? One for the local desktop and one for when they are working in the terminal? They will not be working in both at the same time.
Thanks.
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Nick Rhode

It would be 1 license for each so in other words 2 licenses.  When opening up an RDP session to the terminal server it will treat that as basically another system with an office license in an essence.
Brad Bouchard

Do you mean two licenses for the same user? One for the local desktop and one for when they are working in the terminal? They will not be working in both at the same time.
Thanks.

Yes unfortunately that is the way Microsoft makes you do it.
ASKER
MM-inquiries

Just to make sure... there is no way to go around that?
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Brad Bouchard

no, i work on ts all day and there is no way around it
ASKER
MM-inquiries

Thanks very much for your prompt replies.
Brad Bouchard

No worries... I'll thank you for the prompt point assignments too... :)
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Lee W, MVP

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ASKER
MM-inquiries

Very interesting, leew... I understand your rationale  re: if you have an OEM copy of Office on the laptop you definitely need a second license for the RDS. Not sure if I got why the vice-versa case is different, namely how is the VL license per CAL covering for Office on the local laptop?
Thanks a lot.
Nick Rhode

To summarize if you have an OEM copy of office installed on the laptop you would need volume licenses to cover the terminal server.  However if you have volume licenses installed on the laptops then the licensing would be as follows:

Example:

10 Laptops with Office Volume Licenses
1 Terminal Server with an Office Volume License

You would need 11 Volume licenses total.  Microsoft has the agreement that if you are using a volume license of office, you can use the product remotely on any device as long as it is the exact same copy.  This means you cannot use standard office on the PC to be able to use Pro on the server etc.  So as the above example you are licensing 11 physical devices.

Review the remote agreement section in the briefing pdf:  http://www.microsoft.com/licensing/about-licensing/briefs/volume-licensing.aspx

leew is correct, I would definetly verify with microsoft and license agreements should not be violated because license audits can definetly hurt.  Last I remember microsoft can hit you up for (up to) $250,000 per incident.  And when I say per incident that means per violation.  So if you are abusing 5 licenses thats (up to) $1,250,000.  This was in the office 2010 days so most likely that could be updated.
Lee W, MVP

Understand, when "fined" by Microsoft, it's not that Microsoft is fining you - they are SUING you for breach of license and damages.  This means not only might you have to pay what they are suing you for, but also LEGAL FEES which can also add up.  I don't know about the $250,000 per incident... I had heard it was 3x the retail value of the software license that they try to get... But I've never been involved in an audit (so far) so I don't know.
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ASKER
MM-inquiries

Thank you both for your follow up.

May I ask in case we buy terminal server licenses only and not OEM licenses for Office on laptops, can we install Office (Same version) in both terminal and local desktops, so the user can work locally when is off line? Can we do this under one terminal  license only?
ASKER
MM-inquiries

I meant one license for one user that will work in terminal sometimes and other times on local laptop?
Nick Rhode

If i understand you question correctly....yes.  If you want a terminal server you must make sure you cover the cals for the RDP sessions (just like server cals and exchange cals).

So if you want to setup a terminal server you would need the following (if you had 10 users).

Terminal Server License
10 Terminal Server CALs

11 Office Volume Licenses (1 license to install on the server and 10 to install on the laptops/PCs etc).

Since it is a volume license the users can RDP into a terminal server and use the office in a session without requiring an additional license.  They can also use office locally on the PC when not in a session etc.
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rwheeler23
ASKER
MM-inquiries

This is the answer I was looking for - our users would work on laptops and/or terminal by having one CAL license and one Office license per user plus the additional Office license for the terminal which would cover all users when they connect.
ASKER
MM-inquiries

NRhode do you have any comment on the response stating that 10 users would need 10 Office licenses for laptops and 10 for Office in terminal? Of course 10 CAL license too.
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ASKER
MM-inquiries

I am clear now. I am very grateful for your details. Thank you.
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