Overview

This article will help you understand Microsoft's licensing rules when licensing a user with Microsoft 365 subscription products in a virtual desktop.  At the end of this article there is a table listing each Microsoft subscription product and whether it's supported in a virtual desktop.

Windows 10/11 Enterprise

In a virtual environment:

• The Windows 10/11 virtual desktop is not licensed.  Instead, the user accessing the Windows 10/11 virtual desktop is licensed.
• The user account is licensed by purchasing one of Microsoft's subscription products in your 365 tenant.
• The user account can be created in the 365 tenant, or be synced to the 365 tenant from a local Active Directory.
• A licensed user has the permissions to access up to 5 virtual desktops (physical machines like laptops or desktops are eligible too).

Microsoft has three products for licensing a user for Windows 10/11 Enterprise:

• Windows 10/11 Enterprise E3
• Windows 10/11 Enterprise E5
• Windows 10/11 Enterprise E3 VDA

The following base plans include Windows 10/11 virtualization rights:

• Microsoft 365 Business Premium (in Azure virtual desktops only)
• Microsoft 365 F3
• Microsoft 365 E3 (includes VDA)
• Microsoft 365 E5 (includes VDA)

The following base plans do not include any Windows 10/11 virtualization rights, and must be paired with one of the Windows 10/11 Enterprise licenses:

• Microsoft 365 Business Basic
• Microsoft 365 Business Premium (when not in Azure)
• Microsoft 365 F1
• Office 365 F3
• Office 365 E1
• Office 365 E3
• Office 365 E5

Office Suite of Apps

Microsoft has two subscription products for their Office apps:

• Microsoft 365 Apps for Business (formerly Office 365 Business Standard)
• Microsoft 365 Apps for Enterprise (formerly Office 365 ProPlus)

Microsoft does not support the Microsoft 365 Apps for Business subscription product in a virtual desktop.  You must purchase the Microsoft 365 Apps for Enterprise subscription product, or a base plan that includes Microsoft 365 Apps for Enterprise.  Additional details can be found in Microsoft's Office Applications Service Description article.

The following are the base plans that include Microsoft 365 Apps for Enterprise, and support running the Office apps in a virtual desktop:

• Microsoft 365 E3
• Microsoft 365 E5
• Office 365 E3
• Office 365 E5

Which Products Should I Choose?

For organizations that require 300 or fewer seats, the best base plan is Microsoft 365 Business Premium.  This gives you virtualization rights for Windows 10/11 (in Azure) and the Office Apps.  It also gets you additional security features for email, data, identity, and mobile device management.

For larger organizations, the Microsoft 365 E3 base plan is a good fit, especially if security is a priority.  Microsoft 365 E3 includes Windows 10/11 Enterprise E3 VDA and Microsoft 365 Apps for Enterprise.  Optionally, you can pair the Office 365 E3 base plan with the Windows 10/11 Enterprise E3 subscription.

Product Support Matrix

The below table lists each Microsoft base plan and whether it's supported in a virtual desktop.  Most of the base plans will need to be paired with the Windows 10/11 Enterprise E3 add-on subscription to be supported in a virtual desktop.