Install Office 2013 on Surface Pro 3

1] Check that the install media used was the media for the VLK key or OEM depending on which type of key you have. It could be that the license key utilized is not the correct key for the install media utilized

2] If this is the correct media, right click the Outlook 2013 icon and run it as admin, than try to re-enter the license under File>>Office Account>>Change Product Key.

3] If this still fails ring Microsoft Licensing Support for assistance. It will take you 10-15 minutes to go through the automated system and get the license activated, I suspect it might have reached its activation limit if both above options are not the issue.

When I brought the Surface home, Office activated without an issue. I believe the problem revolves around a new webfilter I installed last week from Barracuda. I will review the rules on the Webfilter to determine what was blocking the activation.

Thank you for trying to assist with the issue

Yes, that would do it too indeed. Glad to see you located the likely issue yourself. Good luck :)

P.S. Option 3 would work around the issue, but an even better solution would be to setup a KMS, which would allow you to keep the tunnel to MS activation closed and secured.

http://technet.microsoft.com/en-us/library/dn385356%28v=office.15%29.aspx

The software was installing correctly. Activation was failing with no error indicating the Barracuda web filter was blocking access. Once the Surface was taken out of our network environment and connected to a different wifi network - the activation proceeded as expected. Upon returning to work, web filter settings were reviewed and things then proceeded as expected.