On November 1, 2024, Microsoft officially released Windows Server 2025, introducing some new features, price changes, and licensing options. In this article, we’ll discuss the key changes and potential impact for organizations considering an upgrade to Windows Server 2025.
New features and improvements
Microsoft has implemented several technological enhancements in Windows Server 2025, focusing on security, performance optimization, and cloud integration capabilities. This new version offers enhanced security options in Active Directory (AD), with a stronger emphasis on encryption and protocol improvements, which contribute to safer identity management. The updated SMB (Server Message Block) functionality now supports SMB over QUIC, enabling secure file access over the internet without a VPN, which could be a significant improvement for hybrid work environments.
Additionally, Windows Server 2025 now offers a hotpatching subscription, allowing users to apply security updates without needing to restart the system. This subscription is available via Azure Arc, catering to organizations that manage their Windows Servers both in the cloud and on-premises.
Licensing models and price increases
As with previous versions, the licensing structures of Windows Server 2025 are divided into two editions: Standard and Datacenter. These editions remain largely the same in functionality as Windows Server 2022 but differ primarily in virtualization rights. The Datacenter edition offers unlimited virtualization rights, while the Standard edition is limited to two virtual instances. This means that organizations with high virtualization needs typically require the more expensive Datacenter edition.
In addition to these existing licensing models, Microsoft now offers a pay-as-you-go (PAYG) option via Azure Arc. This PAYG model allows companies to be more flexible with their licensing usage based on current needs, which can be advantageous for organizations aiming to variabilize costs. However, this model is primarily intended for hybrid or cloud-based environments and may be less cost-effective for fully on-premises infrastructures.
A key point to note with Windows Server 2025 is the 10% price increase compared to Windows Server 2022. Although this price rise applies to both editions, the mandatory purchase of Client Access Licenses (CALs) still applies to both Standard and Datacenter editions. For organizations with a large number of users or devices, this could mean higher access costs in addition to the base license.
Cloud integration and hybrid options
With Windows Server 2025, Microsoft is focusing strongly on supporting hybrid cloud models. Integration with Azure Arc makes it easier to centrally manage on-premises Windows Servers and take advantage of Azure services. This enables organizations to better manage their network, security, and performance policies across multiple locations and environments. The software-defined networking (SDN) multisite features now support both L2 and L3 connectivity, simplifying organization-wide network policies and seamless workload migration.
Through this strong integration with Azure Arc and the PAYG licensing option, Microsoft is clearly targeting organizations that work in or aim to work in hybrid environments. At the same time, using these new features requires a cloud connection, meaning that optimal use of these functionalities is closely tied to the Azure environment.
Conclusion
Windows Server 2025 builds on previous versions with new features that strengthen both security and hybrid cloud management. The introduction of hotpatching, improved networking options, and SMB over QUIC are valuable additions for organizations looking to simplify and secure their IT management. The PAYG model via Azure Arc offers a new option for license management but is most appealing for hybrid and cloud-based structures.
The 10% price increase and mandatory CALs mean that organizations will need to carefully analyze their cost structure to make an informed upgrade decision.