Validating licences for M365 and AVDs

Question

We currently have E3 licenses with Microsoft. We are on Azure and when we launch Azure Virtual Desktop (AVD) and launch M365, M365 licenses are validated against Microsoft servers using user credentials and ADID. We also do not have dedicated AVD licenses available; AVDs currently running on extended trial licenses. We will eventually purchase AVD licenses. License validation for M365 takes 5-10 minutes during peak hours.

Existing setup relies on Microsoft servers for license validation, causing delays. What we want is reduce the time take for M365 licence validation and AVDs as well. Will setting up Active Directory-Based Activation (ADBA) or Key Management Service (KMS) for Office 365 and AVDs solve the issue. Please guide.

Answer 1

Dear Senthil,

Thank you for reaching out with your query (here at Q&A portal) regarding Microsoft 365 and Azure Virtual Desktop license validation delays.

I would be happy to proposed next

1. Active Directory-Based Activation (ADBA)
   • Applicability: ADBA is typically used for on-premises volume licensing (e.g., Windows, Office perpetual licenses).
   • Limitation: It does not support Microsoft 365 (subscription-based licensing) or Azure Virtual Desktop.
   • Conclusion: Not a viable solution for your scenario.
   Key Management Service (KMS) Applicability: KMS is designed for volume activation of on-premises Windows/Office installations.

     Limitation: Like ADBA, it does not support M365 or AVD licensing.
   
        Conclusion: Not suitable for your cloud-based setup.
   

Since M365 and AVD licensing are cloud-based, the validation must occur via Microsoft’s servers. However, you can optimize performance by

For Microsoft 365

Enable Cached Exchange Mode in Outlook to reduce dependency on real-time license checks.

• Ensure healthy network connectivity to Microsoft’s licensing servers (*.office.com, *.microsoft.com).

Use Azure AD Connect (if hybrid) to sync identities efficiently.

For Azure Virtual Desktop

Procure proper AVD licenses (per-user or per-device) instead of relying on trial licenses.

Optimize session hosts:

Use FSLogix for profile containers (reduces sign-in delays).

  Ensure VMs are in a region close to users.
  
  Check for throttling: If multiple validation requests are sent, Microsoft may throttle traffic.
  

Neither ADBA nor KMS will help in this case since M365 and AVD licensing are cloud-based. Instead, focus on network optimization and proper licensing. If delays persist, consider opening a support case with Microsoft to investigate latency in license validation.

Let me know if you need an additionals explanations pls.

Best regards,

Alex

P.S. If my answer help to you, please Accept my answer

Answer 2

Hi Senthil Prabhu Thangavelu,

As per my understanding, M365 relies on user credentials and Azure AD for authentication and license validation. This process is inherently tied to Microsoft's cloud infrastructure, making ADBA/KMS irrelevant for reducing validation times. However, there are ways to optimize and reduce validation delays for both M365 and AVD.
Implement Hybrid Identity Solutions: Use Azure AD Connect to maintain a synchronized hybrid identity setup, which can reduce reliance on real-time cloud validation during peak hours

If M365 servers take long to validate licenses, it could be due to network congestion. You can:

• Use Microsoft 365 Network Connectivity tool (link) to analyze network paths.
• Set up direct routing for Microsoft 365 traffic by bypassing proxies/firewalls for M365 endpoints.
• Deploy Azure Private Link for M365 traffic if available.

Your AVDs are on extended trial licenses, and eventually, you’ll purchase licenses. To ensure smooth licensing:

• Assign AVD per-user licenses directly in Entra ID when purchased.
• Ensure the AVD session hosts are running a supported OS: Windows 10/11 Enterprise Multi-Session Windows Server with RDS CALs
  https://learn.microsoft.com/en-us/azure/virtual-desktop/prerequisites?tabs=portal

Enable Microsoft 365 Apps Shared Computer Activation (SCA)

• Since AVD is a multi-user environment, using Shared Computer Activation (SCA) helps speed up activation. troubleshoot-shared-computer-activation#verify-that-shared-computer-activation-is-enabled-for-microsoft-365-apps

Hope this helps!

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