On-premises use rights

On-premises server access rights

A User SL for an online service that includes rights to access a licensed on-premises server is known as a CAL equivalent license. Because the User SL is a subscription license it’s deemed to be equivalent to the latest version of an on-premises User CAL.

The Microsoft 365 E3 and E5 User SLs include rights to access licensed on-premises servers equivalent to those for Office 365 E3/E5 and EMS E3/E5. You can find this information in the CAL and ML Equivalency Licenses section of the Product Terms.

A Microsoft 365 E3 license includes these CAL/CML equivalent licenses:

• Exchange Server Standard CAL
• Exchange Server Enterprise CAL
• SharePoint Server Standard CAL
• SharePoint Server Enterprise CAL
• Skype for Business Server Standard CAL
• Skype for Business Server Enterprise CAL

• Windows Server CAL
• Windows Server AD RMS CAL
• Microsoft Identity Manager CAL
• Advanced Threat Analytics CML
• Microsoft Endpoint Configuration Manager CML
• System Center Service Manager CML
• System Center Endpoint Protection SL

A Microsoft 365 E5 license includes CAL/CML equivalent licenses:

• Exchange Server Standard CAL
• Exchange Server Enterprise CAL
• SharePoint Server Standard CAL
• SharePoint Server Enterprise CAL
• Skype for Business Server Standard CAL
• Skype for Business Server Enterprise CAL
• Skype for Business Server Plus CAL

• Windows Server CAL
• Windows Server AD RMS CAL
• Microsoft Identity Manager CAL
• Advanced Threat Analytics CML
• Microsoft Endpoint Configuration Manager CML
• System Center Service Manager CML
• System Center Endpoint Protection SL

On-premises server installation rights

There is one other quirk with Microsoft 365 E3 and E5 User SLs, which is additional rights (known as Extended Use Rights) that are granted if the licenses are purchased through an Enterprise Agreement or the MPSA, but NOT CSP. These additional rights allow the installation of some of the server products which may then be accessed by the Microsoft 365 E3/E5 licensed users or, in fact, external users. The products are Exchange, SharePoint and Skype for Business Server and the rights allow unlimited installations of these products in both physical and virtual infrastructures, with rights to previous versions if required. Originally, the installations were restricted to hardware dedicated to the customer which could either be their own hardware or that of an Authorized Outsourcer. However, with the introduction of the Flexible Virtualization Benefit this was expanded to include Authorized Outsourcers’ shared servers too – find this information in the May 2025 Flexible Virtualization Benefit Licensing Guide by searching for “Extended Use Rights”.