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Office 365 licensing and proper use on PCs with multiple users

We have a client that has an Office 365 Business Premium subscription with 41 licenses. They have created user accounts in O365, some specific to users, others specific to a role that users only 1 PC. On the computers that are specific to a role, up to 7 users could be logging into that computer throughout the day and using the Office applications installed on that machine. Let me be clear on the fact that no Office 365 user has Office installed using their account on more than 1 PC.

Is the way that Office is being utilized on the role-based machines technically illegal? I have gotten answers multiple ways thus far and was hoping to get some clarification on this. If yes, why? If no, why? And if no, do I have to use volume licensing or just a different Office 365 subscription?

Thanks in advance!
Microsoft OfficeMicrosoft 365

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8/22/2022 - Mon