The Licensing How To series posts are provided by our Customer Service Presales and Licensing team members.  These scenario based licensing topics are written on trending topics and issues based on their interactions with customers, Partners and field sellers.  For more posts from the Licensing How To series, search the “Licensing How To” tag on this blog.
A frequently asked Office 365 licensing question that we address on our Team is: what happens if I buy Office 365 but continue to run on premises workloads for certain products? We’ve seen Office 365 Community Forums and other sites light up with something called “dual use rights,” “on premises use rights,” or “on premises access rights.” What does this mean, and how does it apply to me?  Well, the short answer is, it depends.  The basic licensing concept is if you’ve purchased a User Subscription License (User SL, or USL) for an Office 365 Service, that user is licensed to access the equivalent workload(s) running on premises.  While the applicable application server CALs are not included in the Office 365 User  subscription License, a CAL equivalency use right is included to access the on premises application server. 
At a high level, it works like this: Users licensed for applicable/eligible Office 365 services have use rights equivalent to a CAL for the purpose of accessing equivalent on premises workloads.  For example, a user licensed for Exchange Online Plan 2 can use their USL to access Standard and Enterprise CAL features of an on premises Exchange Server.  Below is a table with the three Office 365 services which have “on premises access rights.”  On the left and center columns we listed the on premises product and CAL type.  On the right column, we note the Office 365 User SL with rights equivalent to the on premises product and functionality.

On Premises Product
On Premises functionality
Office 365 User SL equivalent
Exchange Server
Standard CAL
  • Exchange Online Plan 1 User SL
  • Exchange Online Plan 1G User SL
  • Exchange Online Plan 2 User SL
  • Exchange Online Plan 2A User SL
  • Exchange Online Plan 2G User SL
  • Office 365 Enterprise E1-E4 User SL
  • Office 365 Education A3-A4 User SL
  • Office 365 Government G1-G4 User SL
Enterprise CAL
  • Exchange Online Plan 2 User SL
  • Exchange Online Plan 2A User SL
  • Exchange Online Plan 2G User SL
  • Office 365 Enterprise E3-E4 User SL
  • Office 365 Education A3-A4 User SL
  • Office 365 Government G3-G4 User SL 
SharePoint Server
Standard CAL
  • SharePoint Online Plan 1 User SL
  • SharePoint Online Plan 1G User SL
  • SharePoint Online Plan 2 User SL
  • SharePoint Online Plan 2A User SL
  • SharePoint Online Plan 2G User SL
  • Office 365 Enterprise E1-E4 User SL
  • Office 365 Education A3-A4 User SL
  • Office 365 Government G1-G4 User SL 
Enterprise CAL
  • SharePoint Online Plan 2 User SL
  • SharePoint Online Plan 2A User SL
  • SharePoint Online Plan 2G User SL
  • Office 365 Enterprise E3-E4 User SL
  • Office 365 Education A3-A4 User SL
  • Office 365 Government G3-G4 User SL 
Lync Server
Standard CAL
  • Lync Plan 1 or 1G User SL
  • Lync Plan 2, 2A or 2G User SL
  • Lync Plan 3, 3A or 3G User SL
  • Office 365 Enterprise E1-E4 User SL
  • Office 365 Education A3-A4 User SL
  • Office 365 Government G1-G4 User SL 
Enterprise CAL
  • Lync Plan 2, 2A or 2G User SL
  • Lync Plan 3, 3A or 3G User SL
  • Office 365 Enterprise E1-E4 User SL
  • Office 365 Education A3-A4 User SL
  • Office 365 Government G1-G4 User SL
  • Live Meeting Standard User SL
  • Live Meeting Professional User SL 
Plus CAL
  • Lync Online Plan 3, 3A or 3G User SL
  • Office 365 Enterprise E4 User SL
  • Office 365 Education A4 User SL
  • Office 365 Government G4 User SL 
Please note that applicable CAL Suite Bridge licenses may be required for on premises access 
to workloads not included (i.e. Windows Server) in the Office 365 User Subscription License, 
see the applicable product specific sections in the 
Product Use Rights document 

A few important notes to mention before closing: 
  • The plans listed above are the only current Office 365 licenses with “on premises access rights.”  Other Office 365 Plans, such as the Small/Midsize Business and Kiosk Plans do not have the same use rights.
  • You are responsible for licensing the on premises server instances under their traditional license models.  For example, if you have 4 instances of SharePoint Server running on premises, you will need to have 4 licenses for SharePoint Server, as well as the underlying Windows Server licenses and applicable Windows Server CALs.
  • Due to software license dependency, your Office 365 licensed users are still required to be licensed with underlying and supporting products – such as Windows and/or SQL Server CALs.
  • Your Office 365 User SLs (as covered above) can be used to access your licensed servers deployed on third party shared servers/datacenters via License Mobility through Software Assurance.
  • “On premises access rights” work for current versions of the above server products, as well as earlier versions (licensed or via downgrade rights)
  • Office Web Apps Server has similar rights, where users licensed for Office 365 Plans which contain Office 365 ProPlus have rights to edit using an on premises Office Web Apps Server.  See our How to license Office Web Apps Server post for more details.
This is one scenario and licensing situation. Each customer scenario can vary by deployment, usage, product version, and product use rights.  Always check your contract, and the current Products Use Rights document to confirm how your environment should be fully licensed.  The blogging team does not warrant that this scenario will be the right licensing solution for other similar cases.