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Probably many of you have already heared the term "Dual Usage Right" in Microsoft Dynamics 365. Especially when dealing with Dynamics 365 licenses, the term comes up more often. In the official Dynamics 365 Licensing Guide the term is explained as follows:

One of the advantages of Dynamics 365 is dual use rights. This allows customers the option to deploy the server software either in Microsoft’s cloud or in a private on-premises or partner-hosted cloud. In some cases, customers may want to deploy both types of instances simultaneously. This might be done to help with migrating a Dynamics 365 on-premises deployment to Dynamics 365, running private Dev/Test deployments in Microsoft Azure. With Dual Use Rights, Dynamics 365 users licensed with the required User SL (Subscriptions do not need to acquire CALs to access Server instances.

Dual Usage Rights Dynamics 365

What are Dual Use Rights?

To explain it with a simple example: Dynamics 365 online users can without any problems access a Dynamics CRM On-Premise instance with the same entitlements.


  • A Dynamics 365 for Sales Enterprise Online SL (Subscription License) User

has the same entitlements as

  • A Dynamics 365 for Sales Enterprise On-Premise CAL (Client Access License) User

You should note, however, that some functions are not available in the on-premise version. Many of the most recently published AI functions cannot be used on a local CRM server.

Where do you get the Dynamics 365 On-Premise Key?

Unfortunately, the available Microsoft documents on how to obtain this on-premise key are not very helpful. It is not explained in detail what steps are necessary to get the Dynamics 365 On-Premise Key.

Trying to get an answer directly from Microsoft Support can sometimes lead to you being redirected to the Dynamics 365 Licensing Guide. However, this guide does not explain how to obtain the license key, let alone a step-by-step guide for requesting the license key.

Where does the Microsoft Dynamics 365 License Key Comes From?

The first question to be answered is where does the organization get the Dynamics 365 licenses from? Depending on this answer you are able to find out how to obtain the on-premise key.

  • Ordered directly via the Office 365 Portal
  • Online subscription via a Microsoft Partner
  • A subscription via a volume license or one of the other agreements with Microsoft

Via a Cloud Solution Provider (Microsoft Partner)

In this case you can find the key on the Customer Source Portal.

Microsoft „Products and Services“ agreement

The key should be in the Microsoft Business Centre.

Volume license agreement with Microsoft

You should log in into the Volume Licensing Service Centre. The key should be under your listed products.

Directly via Office 365 with a „Partner of Record 

You should contact your partner directly. The partner will create the request for the Microsoft Pre-Sales Team. After a few days the Dynamics CRM On-Premise should arrive via e-mail.

Directly via Office 365 without a „Partner of Record

In this case it is probably necessary to contact the Microsoft Online Support. At least we weren't able to find out where the key is stored or can be requested. It is quite possible that Microsoft Support recommends that you have a look at one of the Microsoft documents. Don't let them get rid of you and request the key.

Deploy Dynamics 365 On-Premise

The recommended requirements are as follows:

  • Processor: Four cores with 64-bit technology and a minimum of 2 GHz
  • Memory: 8 GB
  • Hard disk: 40 GB

First step is to install Dynamics 365 Server (Version 9.0). If updates are available, you should install them directly. Currently, version 9.0 is the most recent on-premise version.

Otherwise, all the usual requirements for a local Dynamics CRM apply - you need a SQL Server instance, an Active Directory, to authenticate with and run a compatible version of Windows Server. At Microsoft Docs, as usual, everything is specified in detail.

Conclusion of Dual Usage Rights

Suppose your organization already has an existing infrastructure that supports an on-premise instance. In that case, you can minimize all costs that occur for additional sandbox instances in Office 365. So local developer and test Dynamics instances can be set up and the costs for online sandbox licenses can be saved.

However, Microsoft must simplify the obtaining of the on-premise key. At the moment the process is not explained clearly enough and many companies do not use the potential of the additional key.

Do you have any further questions? Contact one of our consultants or leave a comment.