Windows 10 Threshold 2 Upgrade to 1511 version 10586

My current understanding is official WSUS server required an update itself to be able to successfully deliver the 1511 upgrade. From testing in recent weeks I'd observed WSUS portable is currently unable to deliver the 1511 upgrade. Is the 1511 upgrade the kind of thing that will one day be able to be successfully delivered with WSUS portable? I just ask because I serve a small organization and Windows Updates Delivery Optimization (WUDO) isn't helping, nor does WUDO seem to have any published technical literature to actually troubleshoot it. So I'm thinking I may need to make additional time and money investment to deploy an actual Windows Server with WSUS to effectively serve my organization. Thanks for your exceptional work all!!!!