Could they do it? Deactivate Windows licenses, block Cloud services, access to Office 365 and whatnot?
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They could block Windows licenses going forward, but it wouldn’t impact all the activations already done. Windows is not a subscription.
Despite their best efforts.
Give it 3 years… “Your operating system license has expired, renew now for $150/year.”
Unfortunately for them, my relationship with Microsoft expired last year.