Install Office 365 ProPlus on Windows Terminal Server / RDS

UPDATE 2017: There is now this awesome tool as where you can create an Office365 installer, see here for more information:

Since September 2014, the ProPlus edition of Office 365 allows you to install Office365 on a terminal server.

This how-to will help you install Office 365 ProPlus on your terminal server.
I’ve tested this with Windows 2008 R2.

Step 1. If for example, Office 2013 is installed you need to completely remote that.
There is a FixIt for this:

Step 2. You need to download the Office Deployment Tool here –

Step 3. Run the tool and extract the files to a folder on your server.

Step 4. Edit the ‘Configuration.xml’ file.
My file looks like this:

<Add OfficeClientEdition="32" >
<Product ID="O365ProPlusRetail">
<Language ID="en-us" />

<Display Level="None" AcceptEULA="True" />
<Property Name="SharedComputerLicensing" Value="1" />
<Logging Path="%temp%" />


Step 5. Run ‘cmd’ as administrator and CD to the folder you used for extracting the files.

type: setup.exe /download configuration.xml

The Office365 files will now be downloaded.

Step 6. When that’s complete run the next command:
setup.exe /configure configuration.xml

Step 7. When this command is complete Offce365 is installed on your terminal server.

Step 8. Make sure every user that should be using Office 365 has an active license in the Office 365 control panel.
Once you start Office365 on the server the program will come up with an activation screen, log in with the users credentials and you are ready to go!