Passing on clarification from Microsoft’s Jeremy Chapman (pictured left) regarding Office 365’s Click-to-Run Office 2010 Professional Plus (available through “normal” subscriptions, such as the E3 plan as of this writing, April, 2015) and why it will not install on a RDS/TS Server:
“The Office 2010 subscription (365) install has activation based on retail activation, which is incompatible with RDS. RDS requires a Volume Activation package of Office 2010 – there is no way to make it work using the Office 2010 subscription package.
“The updated Office 365 ProPlus package has a new form of subscription retail activation (Shared Computer Activation), which works when installed on a server with the RDS role enabled. In that case, Office doesn’t activate in the traditional machine-level sense, but provides the logged in user-based temporary activation within that user’s profile. If the user has been provisioned for Office 365 ProPlus, they can log in with those credentials to unlock Office. In a VDI or hosted/remote app architecture, each user logging into the RDS host would need to be provisioned in Office 365 ProPlus to unlock Office for their session.”
A big thank you to Jeremy for clarifying the underlying reasons why 2010 does not work and 2013 does! Be sure to catch his great work over on the Office Blogs at http://blogs.office.com/author/jeremy-chapman too!