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Licensing Office Destkop apps in Azure

Isabel Gómez Miragaya 20 Reputation points
2025-09-04T10:13:27.0366667+00:00

One of our customers wants to use Excel 2021 and Word 2021 in a Windows RDS Server in Azure. They are going to acquire Windows RDS CAL license for each external user. Each external user has a Windows AD identity (Domain controllers in Azure) so they DO NOT have Entra ID identities. What are the options to license Office Desktop apps in this case?

  1. Office LTSC 2021 Standard or Pro plus with Software assurance or excel/word 2021 LTSC with Software assurance is an option? According to license terms, this is not possible in Azure but we would like to confirm it

Office Desktop Applications Product Terms page, see here.

  1. Is Microsoft Apps for Business or for Enterprise the only option? If this is the case, it is NOT feasible because there is no Entra id identity. What is the solution in this case?
    1. The Microsoft 365 terms state: Microsoft Product Terms

There is a previous answer in this thread https://learn.microsoft.com/en-us/answers/questions/5535972/licensing-excel-and-word-2021-in-azure-rds-windows?page=1#answer-12206531 that says that you can use Office LTSC 2021 Standard or Pro plus with Software assurance or excel/word 2021 LTSC with Software assurance to license this case but the LIcensing terms do not explicitly say it is possible

Can anybody confirm what is officially possible and compliant?

thanks in advance

Isabel

Windows for business | Windows Client for IT Pros | User experience | Licensing for Azure Virtual Desktop
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  1. Brian Huynh (WICLOUD CORPORATION) 700 Reputation points Microsoft External Staff Moderator
    2025-09-05T03:15:15.6266667+00:00

    Hello,

    Thank you for reaching out.

    You are correct in your interpretation of the licensing terms.

    Deploying Office LTSC 2021 (Standard or Pro Plus) on an Azure RDS Server is not a compliant licensing option. Azure is defined as a "Listed Provider" in the Microsoft Product Terms. Perpetual licenses for desktop applications like Office, acquired through a Volume Licensing agreement, are not permitted to be deployed on Listed Provider infrastructure. Software Assurance with License Mobility does not apply to desktop applications like Microsoft Office.

    The correct and compliant solution for using Office apps on an RDS server in Azure is Microsoft 365 Apps for enterprise (or a plan that includes it, like Microsoft 365 E3/E5).

    References:

    Please let us know if you have any further questions.

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