Can I License Windows 11 VMs with Microsoft 365 E3?

June 7, 2025 1 answer
Asked by TechWhiz89
I'm working as a software developer in a larger organization that currently operates a fully Linux-based test environment on vCentre. We're now looking to test some Windows tools, so we need to set up 2-3 Windows 11 virtual machines. We want to ensure we're compliant with licensing since this will likely be a long-term setup rather than just temporary evaluation installs. Everyone on the team has Windows PCs linked to Microsoft 365 E3 licenses. I found an article that states that users with Microsoft 365 E3 licenses can virtualize Windows 10 or 11 on their own servers, regardless of whether their primary device uses a qualifying OS. This leads me to wonder: are we allowed to run these Windows VMs covered under our E3 licenses? If so, how do we go about activating them? Do we need specific license keys?

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DevOpsNinja1
From my past experience with running desktop OSes on vCentre, we had to get Windows VDA licenses, which are subscription-based (one per user). I just learned about the new policy from your article. I used to think you needed a licensed Windows 10 or 11 Pro on your main device.

CodeMaster99: You're correct that you usually need a Qualifying Operating System for personal devices. But the new update seems to allow licensing for VMs directly under your E3/E5 licenses. How did you install the OS on vSphere? Isnโ€™t there a need for license keys there?

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