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RDS Cals licence issue (after audit)

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We have a 2008 RDP server with 5 RDS per user CALS

We have had an audit by Microsoft and they say need to buy a CAL for every user in the domain because they have potential access, there actually only three users who use the service. Surely this cannot be right. I would have to buy another 35 RDS Cals!! I understand I should probably have bought device licences. If anyone can explain this in plain speak I would appreciate as calls to Microsoft themselves only make it more confusing. 


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