In this highly digitized world, Microsoft 365 has dominated the market to keep its top rank. It has proven especially beneficial for businesses due to its advanced security and scalability. However, at the start of this month, April; it announced some licensing and pricing changes for companies with the need for on-premises deployments. It is going to introduce those changes in products in the month of July 2025. This article is going to explain all the modifications so that your business can be prepared in advance.
License Availability of Exchange Server SE and Skype for Business Server
Exchange Server SE
As previously announced in the Microsoft Roadmap, this is going to be the second of the three planned releases for Exchange Server. Exchange Server SE RTM, which will be accessible in July 2025, Exchange Server 2019 CU15, which was published in 2019, and Exchange Server SE CU1, which will be easily accessible soon, are all part of the three plans. All servers will be impacted, regardless of whether they are completely on-premises, hybrid, or merely using management tools.
Exchange Server 2019 CU15 and Exchange Server SE RTM configurations don’t coexistence with Exchange Server 2013. Furthermore, the configuration in Exchange Server SE CU1 only allows Exchange Server SE to coexist; other unsupported versions are not permitted to coexist.
It is essential that organizations update to the most recent CU if they are still using any version prior to Exchange Server 2019. Either the Legacy upgrade method or the In-place upgrade can be used.
Skype for Business Server
Subsequently, Microsoft announced that the Business Server Subscription Edition of Skype will be accessible in July 2025. Persistent Chat (Pchat) and the last phase of the Modern Admin Control Panel (MACP) will be included. Pchat is a collaboration feature that allows people to create discussion rooms based on a particular topic, where the conversation will be retained over a period. Meanwhile, the final phase of MACP will include IM & Presence, centralized security, Network Configuration, and Monitoring & Archiving.
Upgrading from Skype for Business Server 2019 to Skype for Business Server SE in-place is the quickest and most straightforward method. The process of upgrading is the same as that of installing a CU.
Every user and device that uses Subscription Edition server solutions must have an active cloud subscription license or Software Assurance (SA). Exchange Server and Skype for Business Server followed the same concept as SharePoint with the launch of Subscription Editions, abandoning the traditional 3-year version pattern in Favor of a “version-less” version that is refreshed frequently in line with the Modern Lifecycle Policy.
Updated Pricing
With all ongoing maintenance and updates, Microsoft has updated their prices too. Therefore, all standalone on-premises server products will see a 10% price hike in July. Furthermore, there will be a 20% and 15% price increase for Enterprise CAL Suite and Core CAL Suite, respectively. With effect from July 1, 2025, these price adjustments will be made.
We hope that this piece will help you brace for all of the upcoming changes. To have the simplest access to the next update, we advise companies to renew their licenses to the most recent versions.
Editions & Pricing
Windows Server 2025 is available in two primary editions:
Standard Edition: Priced at approximately USD $1,176 for 16 core licenses, this edition is ideal for physical or minimally virtualized environments.
Datacenter Edition: Priced at approximately USD $6,771 for 16 core licenses, this edition is suited for highly virtualized datacenters and cloud environments.Microsoft+1Microsoft+1
Note: Prices are in USD and may vary by region. Client Access Licenses (CALs) are required for each user or device accessing.
Licensing Models
- Core-Based Licensing:
- Licenses are assigned based on physical cores, with a minimum of 8 core licenses per processor and 16 core licenses per server.
- Standard Edition: Allows use in the physical operating system environment (OSE) and includes rights for two virtual machines (VMs).
- Datacenter Edition: Grants rights to unlimited VMs on the licensed server.
- Virtual Machine (VM)-Based Licensing:
- Introduced in October 2022 for customers with active Software Assurance (SA) or Server Subscriptions.
- Licenses are assigned per virtual core, with a minimum of 8 core licenses per VM.
- Applicable only to virtual environments; does not cover the physical OSE.
New Features & Considerations
- Hotpatching: Available via Azure Arc, allowing security updates without system reboots.
- SMB over QUIC: Enables secure file access over the internet without a VPN.
- Price Increase: Approximately 10% increase over Windows Server 2022 pricing.
- Pay-As-You-Go (PAYG) Licensing: Offered through Azure Arc for hybrid environments, allowing flexible license usage based on actual needs
🗄️ SQL Server 2022: Licensing & Pricing Overview
Editions & Pricing
SQL Server 2022 offers several editions to meet diverse business needs:
Enterprise Edition: Approximately USD $15,123 per 2-core pack.
- Standard Edition:
- Per Core: Approximately USD $3,945 per 2-core pack.
- Server + CAL: Approximately USD $989 per server license, with CALs priced at USD $230 each.
- Developer & Express Editions: Free to use, with certain limitations.
Note: Prices are in USD and may vary by region. CALs are required for each user or device accessing the server in the Server + CAL model
Licensing Models
- Core-Based Licensing:
- Licenses are assigned per physical core, suitable for high-performance and virtualized environments.
- Server + CAL Licensing:
- Licenses are assigned per server, with separate CALs required for each user or device.
- Pay-As-You-Go (PAYG) Licensing via Azure Arc:
- Offers flexibility to scale licensing based on actual usage, beneficial for hybrid or cloud-connected scenarios
Azure Hybrid Benefit
Organizations with active Software Assurance can leverage the Azure Hybrid Benefit to:
- Apply existing Windows Server and SQL Server licenses to Azure virtual machines, reducing costs.
- Utilize on-premises licenses in hybrid environments, maximizing investment in existing licenses.
Key Takeaways
- Windows Server 2025:
- Introduces new features enhancing security and hybrid cloud integration.
- Offers flexible licensing models, including VM-based and PAYG options.
- Implements a price increase over previous versions.
- SQL Server 2022:
- Provides multiple editions and licensing models to suit various organizational needs.
- Introduces PAYG licensing via Azure Arc for greater flexibility.
For organizations in India, it’s advisable to consult with a Microsoft-certified reseller or licensing expert to understand the implications of these changes on your specific environment and to obtain region-specific pricing.
If you need assistance in evaluating the best licensing strategy for your organization or have further questions, feel free to ask!