How to Install Microsoft 365 Business on a Virtual Machine
Question details
The user is trying to install Microsoft 365 Business on a virtual machine but encounters missing setup executables, finding only CAB and DAT files.

- Product
- Microsoft 365 Business
- Device & OS
- Windows Server / Windows 11 VM
- Scenario
- Setting up a virtual environment and attempting to install Microsoft 365 Business offline or manually.
- Observed behavior
- The installation fails, or the copied installation files only display CAB and DAT formats without a recognizable setup file to launch the installation.
Verify that your virtual machine has an active internet connection and that the account you are signing in with has an assigned Microsoft 365 Business Premium license.
Use the Official Office Deployment Tool Inside the VM
Running the official setup tool directly within the virtual machine ensures all necessary files are downloaded and configured correctly, bypassing manual file copy errors.
Copying offline download files directly from a host machine to a virtual machine often leaves behind the necessary executable files, resulting in a folder full of CAB and DAT files. To resolve this, you must run the Office Deployment Tool directly inside the VM.
Open a web browser inside your virtual machine, navigate to the Microsoft Download Center, and download the Office Deployment Tool.
Run the downloaded executable file. Choose a temporary folder on your virtual machine's local drive to extract the 'setup.exe' file and the sample configuration XML files.
Right-click the configuration XML file and open it with Notepad. Modify the Product ID to match your Business Premium license and ensure the language settings are correct, then save the file.
Open Command Prompt as an Administrator. Use the 'cd' command to navigate to the folder where you extracted setup.exe, then type 'setup.exe /configure yourconfig.xml' and press Enter to begin the installation.

Try WPS Office for a Hassle-Free Virtual Machine Deployment
If deploying Microsoft 365 on your virtual machine proves too complex or resource-heavy, consider WPS Office. It is a highly compatible, lightweight alternative that installs in seconds on any Windows VM without the need for complex deployment tools.
- 1. Download the Installer: Visit the official WPS website from your virtual machine browser and download the lightweight installer.
- 2. Install WPS Office: Run the downloaded executable. The straightforward installation wizard requires no command-line tools.
- 3. Open Your Documents: Launch WPS Office and immediately start editing your existing Microsoft Office files with full compatibility.

Frequently Asked Questions
Why do I only see CAB and DAT files when downloading Microsoft 365 for my VM?
This occurs when you copy the raw offline data files from another machine without the deployment executable. You must use the Office Deployment Tool to generate the 'setup.exe' file required to process those CAB and DAT files.
Can I install Microsoft 365 Business on a Windows Server VM?
Yes, Microsoft 365 Apps are supported on specific versions of Windows Server. However, if multiple users will be accessing the VM via Remote Desktop Services, you must configure Shared Computer Activation in your deployment XML file.
Which licenses allow Microsoft 365 installation on a shared virtual machine?
To install and use Microsoft 365 on a shared virtual environment, your account typically needs a Microsoft 365 Business Premium, Enterprise E3, or E5 license that includes Shared Computer Activation rights.




