As of July 2025, Microsoft will be implementing significant changes to the licensing and pricing of on-premises server products. This will have direct implications for organizations that continue to use these products. While Microsoft 365 is increasingly being presented as the preferred option, there is still clear demand for on-premises solutions. However, Microsoft is once again increasing the cost of these products, leaving organizations with less freedom of choice.
General Availability of Exchange and Skype for Business Server Subscription Editions
From July 2025, the Exchange Server Subscription Edition en Skype for Business Server Subscription Edition generally available. To use these versions, organizations must have active Software Assurance (SA) or cloud subscription licenses for all users and devices that access the servers. This can add additional costs and administrative burdens for businesses that rely on on-premises solutions.
In addition, Microsoft is moving away from the traditional three-year version model. From now on, these products will be continuously updated according to the Modern Lifecycle Policy ModelThis means that Microsoft decides when updates are deployed and customers have less control over versions and maintenance.
Price increases for server products and suites
Microsoft is raising the prices of several on-premises products effective July 1, 2025:
- SharePoint Server, Exchange Server and Skype for Business Server → +10%
- Core CAL Suite → +15%
- Enterprise CAL Suite → +20%
These price increases apply to on-premises versions only. The costs of Microsoft 365 products such as SharePoint Online, Exchange Online and Microsoft Teams remain unchanged. This reinforces the idea that Microsoft is trying to steer organizations towards the cloud, despite the fact that many companies still need on-premises infrastructures.
What does this mean for your organization?
It is essential that organizations analyze these changes in a timely manner and determine a strategy for their IT infrastructure. Consider the impact of the price increases and the transition to a subscription model. Contact an independent advisor to explore the best options for your company and avoid unexpected costs.