E3 License Shared Computer Activation
Janie Mccorey
Shared computer activation is required for scenarios where multiple users share the same computer and the users are logging in with their own account. Normally, users can install and activate Microsoft 365 Apps only on a limited number of devices, such as 5 PCs. Using Microsoft 365 Apps with shared computer activation enabled doesn't count against that limit. If your users have their own computers and no one else uses those computers, use product key activation for Microsoft 365 Apps.
To activate Microsoft 365 Apps, TLS 1.2 must be enabled by default on the operating system. Some older operating systems, such as Windows 7 Service Pack 1 (SP1) and Windows Server 2012, need an update applied to enable TLS 1.2 by default. For more information, see Update to enable TLS 1.1 and TLS 1.2 as default secure protocols in WinHTTP in Windows. But, running Microsoft 365 Apps on these older operating systems isn't supported. For more information, see End of support resources for Office.
To use shared computer activation, you need an Office 365 (or Microsoft 365) plan that includes Microsoft 365 Apps and also supports shared computer activation. Shared computer activation is available for the following plans:
When you're using the Office Customization Tool at config.office.com or the wizard built into Microsoft Configuration Manager, make sure that you enable the option Shared Computer in the Product activation section.
If Microsoft 365 Apps is already installed and you want to enable shared computer activation, there are three options to choose from. A reinstallation isn't required. The device must be rebooted in order to apply the change.
Use Group Policy by downloading the most current Administrative Template files (ADMX/ADML) for Office and enable the "Use shared computer activation" policy. This policy is found under Computer Configuration\Policies\Administrative Templates\Microsoft Office 2016 (Machine)\Licensing Settings.
The Support and Recovery Assistant fully automates all of the steps to verify requirements for shared computer activation and to enable shared computer activation. It's available in two versions: enterprise and UI. Use the version that's best suited for your situation.
The Enterprise version of the Microsoft Support and Recovery Assistant is a command-line version. This version supports scripting for managing multiple devices, including those devices not immediately accessible. Download the Enterprise version.
To determine whether the user is licensed to use Microsoft 365 Apps, the Office Licensing Service has to know the user's account for Office 365. In some cases, Microsoft 365 Apps prompts the user to provide the information. For example, the user might see the Activate Office dialog box.
If your environment synchronizes Office 365 (Microsoft Entra ID) and local Active Directory (AD) accounts, users are unlikely to encounter any prompts. Microsoft 365 Apps can automatically retrieve the necessary information about the user's account in Office 365.
These steps are repeated for each user who signs in the shared computer. Each user gets a unique licensing token. Just because one user activates Microsoft 365 Apps on the computer doesn't mean Microsoft 365 Apps is activated for all other users who sign in the computer.
Licensing token renewal The licensing token that is stored on the shared computer is valid only for 30 days. As the expiration date for the licensing token nears, Microsoft 365 Apps automatically attempts to renew the licensing token when the user is logged on to the computer and using Microsoft 365 Apps.
If the user doesn't sign in the shared computer for 30 days, the licensing token can expire. The next time that the user tries to use Microsoft 365 Apps, Microsoft 365 Apps contacts the Office Licensing Service on the internet to get a new licensing token.
Internet connectivity Because the shared computer has to contact the Office Licensing Service on the internet to obtain or renew a licensing token, reliable connectivity between the shared computer and the internet is necessary.
Reduced functionality mode If the user isn't licensed for Microsoft 365 Apps, or if the user closed the Activate Office dialog box, no licensing token is obtained and Microsoft 365 Apps isn't activated. Microsoft 365 Apps is now in reduced functionality mode. In this mode the user can view and print Office documents, but can't create or edit documents. The user also sees a message in the Office program that most features are turned off.
Activation limits Normally, users can install and activate Microsoft 365 Apps only on a limited number of devices, such as 5 PCs. Using Microsoft 365 Apps with shared computer activation enabled doesn't count against that limit.
Microsoft allows a single user to activate Microsoft 365 Apps on a reasonable number of shared computers in a given time period. The user gets an error message in the unlikely event the limit is exceeded.
Single sign-on recommended The use of single sign-on (SSO) is recommended to reduce how often users are prompted to sign in for activation. With single sign-on configured, Microsoft 365 Apps is activated using the user credentials that the user provides to sign in to Windows, as long as the user is assigned a license for Microsoft 365 Apps. For more information, see Microsoft 365 identity models and Microsoft Entra ID.
Licensing token roaming Starting with Version 1704 of Microsoft 365 Apps, you can configure the licensing token to roam with the user's profile or be located on a shared folder on the network. Previously, the licensing token was always saved to a specific folder on the local computer and was associated with that specific computer. In those cases, if the user signed in to a different computer, the user would be prompted to activate Microsoft 365 Apps on that computer in order to get a new licensing token. The ability to roam the licensing token is especially helpful for non-persistent virtual desktop infrastructure (VDI) scenarios.
To configure licensing token roaming, you can use either the Office Deployment Tool or Group Policy, or you can use Registry Editor to edit the registry. Whichever method you choose, you need to provide a folder location that is unique to the user. The folder location can either be part of the user's roaming profile or a shared folder on the network. Microsoft 365 Apps needs to be able to write to that folder location. Using a shared folder on the network might lead to network latency issues, adversely affecting the time it takes to open Office programs. The location is only needed if you prefer to not use the default location, which is %localappdata%\Microsoft\Office\16.0\Licensing.
If you're using Group Policy, download the most current Administrative Template files (ADMX/ADML) for Office and enable the "Specify the location to save the licensing token used by shared computer activation" policy setting. This policy setting is found under Computer Configuration\Policies\Administrative Templates\Microsoft Office 2016 (Machine)\Licensing Settings.
If you're using the Office Deployment Tool, include the SCLCacheOverride and SCLCacheOverrideDirectory in the Property element of your configuration.xml file. For more information, see Configuration options for the Office Deployment Tool.
To edit the registry, go to HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Office\ClickToRun\Configuration, add a string value of SCLCacheOverride, and set the value to 1. Also, add a string value of SCLCacheOverrideDirectory and set the value to the path of the folder to save the licensing token.
I found Office 2021 Home and Business is the least expensive one. The SKU is retail so the client needs to ensure keys are properly stored, this is a not an issue. But can they revoke the key on one computer, and reinstall Office on a new computer?
Licensing MS products is confusing and I look forward to seeing better answers than mine. I may be wrong but as I understand it the later Office 365 licences are associated to the users email address and not the hardware? So a user can move to different computers. Of course you need to look at the details of the licencing for that SKU as that should give details.
Looking at the needs of your clients then there are other options to consider such as What is LibreOffice? LibreOffice - Free Office Suite - Based on OpenOffice - Compatible with Microsoft which is worth looking at.
The Q & A answer for Home and Business on Loading... states, "Our licenses are valid for life and are linked to your Microsoft account, so even if you change your PC or Mac, you will be able to install the same version of the software on your new computer. And here is a reference of how users can share an account How to share a Windows 10 or 11 PC Computerworld and so some can share the computer - I think.
I have seen licenses managed through a Microsoft account by PC, not email. But since the license will be attached to that Microsoft account, you can log that account onto the installed app on each PC (you can install Word, Excel, PP, and others from the Microsoft Store).
I also haven't found something about that in your documentation. Maybe you could point me to that part of your documentation. Furthermore I would find it useful for any users if you add maybe an "?" or something similar after that phrase with a link to the documentation or with an pop up info that explains it.
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