Questions in Office 365 - Product Office Addins - How Best To Set Up Test & Dev Environments

Hello Team,
One of our customer raised this below query:  (Please refer :
http://community.office365.com/en-us/f/172/p/290555/887029.aspx#887029)
We have an existing product which has a set of components which are
Office Addins, working on Office 2007, 2010, 2013.
We have a customer who has asked us to support these on Office 365, as their Microsoft strategy is to move to this platform.
Our understanding is that there are two flavors of Office 365:
A browser-based version written in JavaScript (akin to Google Docs)
version which installs the full Office 2013 on the client, using Click-To-Run as the deployment technology.
We are planning to work with option 2 only just now (for Office 2013 only – not for 2010 or 2007).
In order for us to start working on this, we’ll need Office 365 clients installed both in our development and test environments. We see that we can access Office 365 through our MSDN subscription by doing this:
a. Launching this site:
https://mspartner.microsoft.com/en/us/Pages/index.aspx
b. Signing in
c. Clicking on Resources->Access my software and keys
d. Choosing Office 365
However when we do this, we get this information:
"Important Information on activating your cloud licenses Your cloud product key can only be redeemed once. Therefore, in order to activate your Internal-use cloud
licenses on your existing cloud tenant, you MUST sign in BEFORE you activate your 25 digit cloud product key. Once your cloud product key has been redeemed, you will be unable to use it again.
You have the choice to deploy your program license grants as an on-premises only, online only, or an on-premises and online combination solution. Your combined usage
for on-premises Office products and Office 365 may not exceed your program license entitlement. Country and worldwide license maximums apply. To ensure you are compliant with program policy and guidelines, refer to the Product Usage Guide."
We are not clear on what the above means for us exactly, and which option we should choose: on-premises only, online only, or an on-premises and
online combination solution.
Please advise. Many Thanks.
Balamurugan G.

Hello Balamurugan,
The current forum is for developers. I'd suggest asking non-programming questions on the
Office 2013 and Office 365 ProPlus - Planning, Deployment, and Compatibility 
 or
Office 2013 and Office 365 ProPlus - Planning, Deployment, and Compatibility 
forums instead.

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