With AAD DS, you can join your on-premises Windows 10/11 Enterprise computers to the Azure AD tenant and use your M365 E3 subscription to activate the operating system on those computers. Using the Azure Active Directory (AAD) Domain Services (AAD DS): The AAD DS allows you to use your Azure AD tenant as a managed domain services solution for your on-premises environment. You can configure a KMS host on your network and use it to activate your on-prem domain-joined computers. Using the Key Management Service (KMS): KMS is a volume activation method that allows you to activate Windows and other Microsoft products within your organization without having to connect to Microsoft's activation servers. Once you have the product key, you can use it to activate the operating system on your on-prem domain-joined computers. You can use the VLSC to download the installation media for Windows 10/11 Enterprise and obtain the product key for your subscription. Using the Volume Licensing Service Center (VLSC): The VLSC is a web-based portal that allows you to manage your volume licensing agreements and product keys.
There are a few different ways to apply the Windows 10/11 Enterprise license that you have obtained through your M365 E3 subscription to your on-prem domain-joined computers: