Microsoft office · Oct 13th 2025 · 7 Min read

How To Fix the Volume License Edition Office 365 Error on RDS Terminal Server in 2025

Today, most businesses and professionals use Microsoft Office 365 for day-to-day work for various purposes. But what if you use a remote desktop and face an issue connecting office 365 to the terminal server? Your problem will be solved right away, continue reading to unfold.

There are a few things that must be done before Microsoft Office 365 can be used in a Remote Desktop Services environment. Office 365 terminal server or office for terminal server is like an add on software to run Microsoft based services with ease.
In this guide blog post, we will learn how to fix the volume license edition office 365 error on RDS server (Terminal Server). It will give you a complete guide on this topic. Let us see and learn the steps.

edition office365 issue on RDS server

Figure 1.1

Error Description: “This copy of Microsoft Office cannot be used on a computer running Terminal Services. To use Microsoft Office on a computer running Terminal Services, you must use a Volume License edition of Office“.

Reason for Error “This Copy of Microsoft Office Cannot Be Used”

Aforementioned error is prompt to occur when you install Click-to-Run editions of Office products or suites that are running on a server with Remote Desktop Services(RDS). But the Shared Computer Activation is not enabled.

Moreover, Remote Desktop Services(RDS) is also known as Terminal Services.

Note: Only, Microsoft 365 apps support shared computer activation.

Also learn: How to Download and Install or Reinstall Office 365 on PC

Also learn: How to Cancel Adobe Subscription or Trial in 2025?

Steps to Resolve Volume License Edition Office 365 Error on RDS Server

If we try to install/run the license on a remote server, it is apt to have a volumized license to use the Microsoft Office 365 on virtual server. For this, proceed with below steps:

Step 1. Open Run and type Regedit as shown in figure 1.2.

office365 issue on RDS server Step 2

Figure 1.2

Note: Office 365 volume license simplifies and reduces the cost of installing and updating the same program on several computers inside a single licensing organization.

Step 2. Go to this Location and create a string value.

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Office\ClickToRun\Configuration
Value name: SharedComputerLicensing
Value data: 1

Registry Hive	HKEY_LOCAL_MACHINE
Registry Path	SOFTWARE\Microsoft\Office\ClickToRun\Configuration
Value Name	SharedComputerLicensing
Value Type	String Value
Enabled Value	1 (store the Data)
Disabled Value	0

Step 3. Enter the Details as shown in figure 1.3 and click “OK”.

office365 issue on RDS server Step 3

Figure 1.3

After following the given steps, you will be able to solve the “This Copy of Microsoft Office Cannot Be Used” Issue.

How to Install Office 365 apps on RDS Server (Terminal Server)

In order to get started with installing Microsoft 365 Apps on an RDS server, here are the fundamentals to begin your installation:

Start by “Configuring” and “Installing” your “Windows Server”.
The “Remote Desktop Session Host” role service must be installed and set up.
Users’ accounts need to be added to the Remote Desktop Users group on the “RD Session Host server” to establish remote connections to the server and access “Microsoft 365 Apps”.
To make a configuration file, you can use the Office Customization Tool. In the “Licensing and Activation” section, ensure to tick mark the “Shared Computer” box.
Later, export the configuration file that is created and Save it in the same place where the “Office Deployment Tool” was extracted.
Use text editor for drafting up a configuration file. To do so, add the following line:

<Property Name=”SharedComputerLicensing” Value=”1″ />

To access Microsoft 365 Apps on a shared computer, you must first enable “Shared Computer Activation” through the “SharedComputerLicensing” setting.

Installation of Microsoft 365 Apps on the RD Session Host server can be accomplished with the help of the “Office Deployment Tool” and the “Configuration File”.

After you’ve completed all installation steps, users can readily use Microsoft 365 applications through RD Session Host server.

Also see: How to Access Local Drive Files from Remote Desktop Session

Conclusion

In conclusion, we can say that enabling Shared Computer Activation and correctly configuring the registry or Office Deployment Tool ensures Office 365 works smoothly in an RDS/Terminal Server environment. Following the outlined steps resolves the volume license edition error and lets users access Office apps on shared machines without licensing issues. This post has carefully pointed out each step to get rid of your terminal server error for using Office 365.

FAQs

Can you Use Office 365 on an RDS Server?

Yes, RDS servers do facilitate the use of Microsoft Office 365 applications.

How do I Install Office 365 with Configuration XML?

To set it up, you need only tweak your command line slightly. Type setup.exe /configure “C:ODTconfiguration.xml” while at the command prompt to have Office 365 Pro Plus installed.

Is RDS a Terminal Server?

Yes, until Windows Server 2008, Remote Desktop Services (RDS) were known as Terminal Services.

How to fix office 365 activation error?

To fix an Office 365 activation error, sign in with the correct licensed account, check your internet connection, and run the Office Activation Troubleshooter. If the issue continues, try repairing Office or reactivating your subscription.

written byMark Calatrava

About Author

Mark Calatrava is an experienced content writer with a passion for delivering informative and engaging content. With an impressive 9+ years of experience in the field, Mark has honed his skills in various writing styles and formats. As a certified QuickBooks ProAdvisor, Mark has an extensive understanding of the QuickBooks platform, where he possesses in-depth knowledge and a deep understanding of the software.