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Office Installation Errors

How to Install Office 2016 on Windows Server 2016 for Remote Desktop Users

Natalie TaylorNatalie Taylor Sep 28, 2026 869 views

Question details

The user needs to install Office 2016 on a Windows Server 2016 environment for multiple users connecting via Remote Desktop Services, but only has product keys and no installation media.

How to Install Office 2016 on Windows Server 2016 for Remote Desktop Users
Product
Microsoft Office 2016
Device & OS
Windows Server 2016
Scenario
Deploying Office applications for a shared Remote Desktop Services (RDS) environment.
Observed behavior
The user requires the correct installation media and the proper licensing methodology to ensure Office 2016 functions correctly in a multi-user RDS environment.
Before you start

Verify your Office 2016 license type before proceeding. Retail and Original Equipment Manufacturer (OEM) licenses generally do not support Remote Desktop Services; you will need an Office Professional Plus volume license.

Solution 1Recommended

Install using the Volume Licensing Service Center (VLSC)

Use this method to obtain the correct installation media and deploy Office 2016 using a Volume License, which is strictly required for RDS environments.

To run Microsoft Office on a server with the Remote Desktop Session Host role enabled, a Volume License edition (like Office Professional Plus) is mandatory. Retail or OEM keys will result in a 'cannot be used on Terminal Services' error.

1
Verify Volume Licensing

Confirm that your product keys are for a Volume License edition of Office 2016 (such as Office Professional Plus).

2
Download Installation Media

Log in to the Microsoft Volume Licensing Service Center (VLSC) website using your organizational credentials and download the Office 2016 installation ISO file.

3
Mount and Deploy

Mount the downloaded ISO on your Windows Server 2016. Use the Office Deployment Tool or your preferred management software to run the setup for the RDS environment.

4
Patch and Activate

Install the latest Windows Server and Office patches. Finally, activate Office using your Key Management Service (KMS) or Multiple Activation Key (MAK).

Install using the Volume Licensing Service Center (VLSC)
Activation Tip: For large RDS deployments, using a KMS host for activation is recommended over MAK to prevent exhausting your activation limits.
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Frequently Asked Questions

Why do I get an error saying this copy of Office cannot be used on Terminal Services?

This error occurs because you are trying to install a Retail or OEM version of Office on a server running Remote Desktop Services. Microsoft requires a Volume License edition for shared RDS environments.

Can I use Office 365 or Microsoft 365 on Windows Server 2016 RDS?

Yes, but you must have a specific enterprise subscription (such as Microsoft 365 Apps for enterprise) that includes Shared Computer Activation (SCA). Standard business plans do not support RDS installation.

Where can I download the Office Deployment Tool (ODT)?

The Office Deployment Tool can be downloaded for free from the official Microsoft Download Center. It is required if you are configuring Click-to-Run versions of Office for shared environments.

Do I need to put the RDS server into install mode before installing Office?

Yes, when installing applications on a Windows Server with the RDS role, you should switch the server to Install Mode (using the 'change user /install' command) to ensure registry keys and settings are properly applied for all users.