This policy setting allows you to specify the location where Office will get updates from.
If you enable this policy setting, you can specify one of the following for the update location: a network share, a folder on the local computer where Office is installed, or an HTTP address. Mapped network drives aren't supported.
If you enable this policy setting, but you leave the update location blank, Office will get updates from the Internet.
If you disable or don't configure this policy setting, Office will get updates from the Internet, unless you specify a different location by using the Office Deployment Tool.
Important: This policy setting only applies to Office products that are installed by using Click-to-Run. It doesn't apply to Office products that use Windows Installer (MSI).