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Summary: If you deploy workloads into Office 365 and maintain existing on premises workloads, or in some cases, deploy additional on premises servers to support a hybrid configurations- how do you maintain access to on premises servers. It really doesn’t matter if your long term goal is to move to the cloud entirely, or maintain a hybrid configuration going forward – the licensing is the same. In this Licensing How To post, we cover a concept sometimes called “on premises access rights,” “dual use rights”, and “on premises use rights.” There really isn’t an official term, but the overall use right is to leverage your Office 365 licenses to access on premises servers, instead of buying CALs.
The Licensing How To series posts are provided by our Customer Service Presales and Licensing team members. These scenario based licensing topics are written on trending topics and issues based on their interactions with customers, Partners and field sellers. For more posts from the Licensing How To series, search the “Licensing How To” tag on this blog.
A frequently asked Office 365 licensing question that we address on our Team is: what happens if I buy Office 365 but continue to run on premises workloads for certain products? We’ve seen Office 365 Community Forums and other sites light up with something called “dual use rights,” “on premises use rights,” or “on premises access rights.” What does this mean, and how does it apply to me? Well, the short answer is, it depends. The basic licensing concept is if you’ve purchased a User Subscription License (User SL, or USL) for an Office 365 Service, that user is licensed to access the equivalent workload(s) running on premises. While the applicable application server CALs are not included in the Office 365 User subscription License, a CAL equivalency use right is included to access the on premises application server.
At a high level, it works like this: Users licensed for applicable/eligible Office 365 services have use rights equivalent to a CAL for the purpose of accessing equivalent on premises workloads. For example, a user licensed for Exchange Online Plan 2 can use their USL to access Standard and Enterprise CAL features of an on premises Exchange Server. Below is a table with the three Office 365 services which have “on premises access rights.” On the left and center columns we listed the on premises product and CAL type. On the right column, we note the Office 365 User SL with rights equivalent to the on premises product and functionality.
On Premises Product
On Premises functionality
Office 365 User SL equivalent
Please note that applicable CAL Suite Bridge licenses may be required for on premises access to workloads not included (i.e. Windows Server) in the Office 365 User Subscription License, see the applicable product specific sections in the Product Use Rights document
A few important notes to mention before closing:
This is one scenario and licensing situation. Each customer scenario can vary by deployment, usage, product version, and product use rights. Always check your contract, and the current Products Use Rights document to confirm how your environment should be fully licensed. The blogging team does not warrant that this scenario will be the right licensing solution for other similar cases.
In your second bullet under "important notes to mention before closing" you really need to point out for SharePoint you also need the appropriate SQL server licensing as well as SQL CAL licensing - many people, myself included unit recently, really don't understand the whole license multiplexing thing so pointing it out would be hugely valuable.
is it correct to say that Office ProPlus SL via E3 or E4 does not allow customers to use "downgrade" versions of on-premise Office?
@ Scott - it depends. If a customer has no perpetual license for what they want to run locally and instead have Office Pro Plus rights via Office 365, they generally may not downgrade. However, customers with OPP on their EA/EA-S prior to GA of Office Pro Plus for Office 365 may qualify for an exception. Tony Mackelworth discusses the issue here: microsoftlicensereview.com/.../office-2013-downgrade-rights
Are on premises access rights valid for E plans through MOSA as well?