Microsoft will implement price updates for on-premises server products from July 2025.
Microsoft announces license and price updates for its on-premises server products. The prices for all standalone on-premises server products such as SharePoint Server, Exchange Server, and Skype for Business Server will increase by ten percent from July. Additionally, Microsoft is making Exchange Server Subscription Edition and Skype for Business Server Subscription Edition generally available, although customers will need a license for these.
Price increase
“To support ongoing maintenance and updates for Microsoft’s on-premises server products, prices for all standalone on-premises server products (SharePoint Server, Exchange Server, and Skype for Business Server) will increase by ten percent in July 2025,” according to Jeremy Carlson from Microsoft in a blog post. The prices of the Core CAL Suite and Enterprise CAL Suite, which Microsoft says have remained stable for some time, will increase by fifteen percent and twenty percent respectively.
General availability
Additionally, from July 2025, the Exchange Server Subscription Edition and Skype for Business Server Subscription Edition will be generally available. To use these Subscription Edition server products, customers must have active Software Assurance (SA) or cloud subscription licenses for all users and devices that access them. However, this may mean additional costs or administrative burdens for companies relying on on-premises solutions.
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Furthermore, Microsoft is moving away from the three-year version model. “The release of subscription editions for Exchange Server and Skype for Business Server brings these products in line with SharePoint in transitioning from a 3-year version cycle to a ‘versionless’ product with regular updates through the modern lifecycle policy,” according to Microsoft.
By increasing the prices of its on-premises products, the company seems to be pushing its customers increasingly towards the cloud. With this announcement in mind, companies can prepare and take timely action to potentially adjust their IT infrastructure strategy.