Office 365 on Already Installed Office 2016

I'm working with an environment that previously installed Office 2016 on client desktops without O365 synchronization. That is, Office 2016 was installed and activated with a product key and not synced to an O365 tenant or installed from OWA.

Now, the group wants to deploy an O365 tenant. What is the best way to have newly created O365 accounts linked to client desktop Office installs? Should we re-install Office from OWA for all machines? Or can we somehow update client desktop activations to use the new O365 account?
Michael HerndonAsked:
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David Johnson, CD, MVPOwnerCommented:
If they already have Office 2016 installed then they do not need to be licensed for O365 software. So they can use a different subscription than the users that do not have Office 2016 installed..

Can't update desktop activations to use the new O365 Office software. You have to uninstall and then install the clicktorun version.
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Michael HerndonAuthor Commented:
Thank you for the comment, David.

Would there be benefit to having all installations running O365 software? In terms of managing the deployments from the user account in O365 OWA and having the apps signed in to specific user O365 accounts?
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David Johnson, CD, MVPOwnerCommented:
You've already paid for the Office 2016 FPP (you said via product key so it isn't a subscription) so you'd be paying an extra $7.50/month/user unnecessarily  (the difference between Office 365 Business Premium and Office 365 Business Essentials) or $12/user/month (Office 365
Enterprise E1 vs Office 365 Enterprise E5)

 apps signed in to specific user O365 accounts
The cloud features already use specific 0365 accounts
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Jackie ManIT ManagerCommented:
The only advantage of o365 subscription is that you can upgrade to Office 2018 or the latest version of MS Office when it comes out.
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David Johnson, CD, MVPOwnerCommented:
question answered
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