Windows 11 requires activation to unlock all the operating system’s features and comply with the licensing requirements.

Once activated, Windows 11 devices can:

• Receive updates
• Access all Windows 11 features
• Access support

Several types of activation register the installation of Windows on a device with a standalone or corporate Windows 11 product key. The three main methods of activation are:

• Retail
• OEM
• Microsoft Volume Licensing (volume activation)

Organizations with Enterprise Agreements (EA) can use volume activation methods, which provide tools and services that allow activation to be automated and deployed at scale. These tools and services include

• Active Directory–based activation This is an automated service that, once installed, uses Active Directory Directory Services (AD DS) to store activation objects. This simplifies the maintenance of volume activation services for an enterprise. Activation requests are processed automatically as devices authenticate to the Active Directory domain.
• Key Management Service (KMS) This automated service is hosted on a computer within your domain-based network. All volume editions of Windows 11 periodically connect to the KMS host to request activation.
• Multiple activation key (MAK) Enterprises purchase product keys that allow a specific number of Windows 11 devices to be activated using the Microsoft activation servers on the Internet.

All the above enterprise activation methods utilize services found within traditional on-premises, domain-based environments. An alternative activation method is required to meet the needs of devices registered to cloud-based authentication and identity services, such as Azure Active Directory.

Subscription Activation allows your organization’s Azure AD tenant to be associated with an existing Enterprise Agreement; all valid devices connected to that tenant will be automatically activated.

Eligible licenses that can use Subscription Activation include

• Windows 11 Enterprise E3 or E5 licenses obtained as part of an Enterprise Agreement
• Devices containing a firmware-embedded activation key
• Windows 11 Enterprise E3 in CSP (Cloud Solution Provider), which is offered as a subscription for small- and medium-sized organizations—from one to hundreds of users

Note Firmware-Embedded Activation Key

Most OEM-provided devices designed to run Windows 8 or later will have a firmware-embedded key. You can read more information about firmware-embedded activation key licensing on the Microsoft website at https://learn.microsoft.com/windows/deployment/deploy-enterprise-licenses.

Organizations must meet the following requirements to implement Subscription Activation:

• Enterprise Agreement or a Microsoft Products and Services Agreement (MPSA) associated with the organization’s Azure AD tenant.
• Windows 11 Pro or Windows 11 Enterprise is installed on the devices you want to upgrade.
• Azure AD for identity management.
• All devices are either Azure AD–joined or are members of an AD DS domain synchronized to Azure AD using Azure AD Connect.

If all the requirements are met, when a licensed user signs in using their Azure AD credentials using a device, the operating system switches from Windows 11 Pro to Windows 11 Enterprise, and all Windows 11 Enterprise features are then available. This process takes place without entering a product key and without requiring that users restart their computers.

Devices that have been upgraded using Subscription Activation must be able to connect to the Azure AD tenant at least every 90 days to remain licensed. If the Azure AD tenant expires or the user license is unassigned, the device will revert to Windows 11 Pro.