Microsoft’s Announces On-Premises Server Price Increases
Microsoft Server Price Hikes: What Your IT Budget Needs to Know
Microsoft’s Announces On-Premises Server Price Increases
Products Impacted and Increase Details
Microsoft is increasing prices for all standalone on-premises server produ7cts by 10% this July. This includes SharePoint Server, Exchange Server, and Skype for Business Server.
Additionally, the Core CAL Suite will see a 15% increase, while the Enterprise CAL Suite will face a more substantial 20% increase. These pricing changes will take effect on July 1, 2025.
Microsoft is also making Exchange Server Subscription Edition and Skype for Business Server Subscription Edition generally available in July 2025.
Here’s a breakdown of the price changes:
| Product | Price Increase | Effective Date |
|---|---|---|
| SharePoint Server | 10% | July 1, 2025 |
| Exchange Server | 10% | July 1, 2025 |
| Skype for Business Server | 10% | July 1, 2025 |
| Core CAL Suite | 15% | July 1, 2025 |
| Enterprise CAL Suite | 20% | July 1, 2025 |
Licensing Changes
To deploy and use Subscription Edition server products, customers must have active Software Assurance (SA) or cloud subscription licenses for all users and devices that access them. For enterprises still needing an on-premise version of Exchange Server, Microsoft offers several licensing options:
- Qualifying cloud subscription licenses (like Microsoft 365 E3/E5)
- License (Server and CALs) + SA for Exchange Server 2016/2019
- License (Server and CALs) + SA for Exchange Server SE (once released)
These changes align with Microsoft’s transition from a 3-year version cycle to a “version-less” product with regular updates through the Modern Lifecycle Policy.
Business Impact
Organizations with heavy regulatory or data security requirements may continue relying on on-premises servers, even with the cost increases. For these companies, the benefits of continuous security patches and maintenance might outweigh the extra expenditure.
Price-sensitive enterprises may be pushed toward cloud-based alternatives. It’s worth noting that these pricing changes do not affect Microsoft’s cloud services such as SharePoint Online, Exchange Online, or Microsoft Teams.
IT managers now face the dual challenge of upgrading their systems while also justifying increased budget allocations. The new pricing model directly raises the total cost of ownership for on-premises deployments.
For companies already exploring hybrid environments, the price gap might accelerate cloud-adoption strategies as a cost-saving measure.
The most significant timing impact is for Exchange Server users, as Exchange Server 2016 and Exchange Server 2019 are reaching end of support on October 14, 2025. This means organizations will need to transition to the new Subscription Edition or cloud-based alternatives before this date.
The Importance of Having a Trusted IT Advisor Like CinchOps
With these significant changes to Microsoft’s on-premises server pricing and licensing structure, having a trusted IT advisor like CinchOps becomes increasingly valuable. Such an advisor can:
- Track and proactively notify you about pricing changes that impact your business
- Help evaluate the most cost-effective licensing options based on your specific needs
- Assist in planning budget adjustments to accommodate the price increases
- Provide guidance on whether to continue with on-premises deployments or transition to cloud-based alternatives
- Ensure compliance with licensing requirements for the new Subscription Editions
- Develop a strategic roadmap to navigate the evolving Microsoft ecosystem
Discover more about our enterprise-grade and business enabling services on our IT Services page.
A knowledgeable IT partner can help you weigh the financial implications against the benefits of continuous updates and enhanced security, enabling your organization to make informed decisions that align with both operational requirements and budget constraints.
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