If there are features in v1703 you need you could deploy v1703 which is Current Branch today. The current version of LTSB is Windows 10 Enterprise LTSB 2016 which is based off v1607. We don't expect to release another LTSB version until 2019.
What are my option for obtaining LTSB. Our strategy is to currently roll out Windows 10 Pro. Due to some GPO changes, we know that we may need Windows 10 E3 at some point. However, until we alight our budget we will stick to Pro. However, will Windows 10 pro + with SA also give us the option of LTSB? We have one ISV that is recommending LTSB.
We're a rather large VMware VDI shop, so we're exploring an LTSB image because VMware says that's the way they best support Windows 10 in VDI. That image and pool are not deployed yet. On our physical desktops we're trying to stay current with Windows 10 Enterprise releases, but we're just in the beginning stages of our Windows 10 migration. Since we're just getting started with our Windows 10 deployments, we're planning to use the VDI pool for our app dev folks to test our in-house apps on Windows 10. Is using LTSB for this going to be a good testing ground to prove compatibility?
VMware is not good in understanding Windows 10, but this has tradition. VMware always tries to solve everything from outside and ro ignore the guest. I personally had long discussions with them about Windows 10 security features like Credential Guard and they always tried to convince me that these security features are not needed on VDI, what is completely wrong. Or they still don't understand UWP apps.
Rule of thumb: never use LTSB on internet facing and email running clients. If you now go with LTSB 2016 you will not receive new security features for the next 3 years, so all new lines of defense against the bad guys are not available for you. The next LTSB comes in 2019, so you are missing 5-6 releases of Windows 10.
LTSB can be used in stable environments that require certification. E.g. a PC that controls a manufacturing tool running a specific software. These Tool-PCs usually need a certification from the tool vendor. Therefore, if the Tool-PC runs LTSB 2016 and I have to replace the machine in some years I still can apply LTSB 2016 w/o asking for re-certification by the vendor.
As already seen in this discussion: LTSB 2016 is 1607 code-base, but less features, so you cannot use it for compatibility testing. Not for 1607 Enterprise and of cause not for newer releases.