On November 1, 2024, Microsoft officially released Windows Server 2025, bringing with it several new features, pricing changes, and licensing options. In this article, we’ll discuss the major changes and the potential impact for organizations considering upgrading to Windows Server 2025.
New features and improvements
Microsoft has made several technological improvements in Windows Server 2025, focused on security, performance optimizations, and cloud integration capabilities. For example, the new version offers enhanced security options in Active Directory (AD), with a greater focus on encryption and protocol improvements that contribute to more secure identity management. The updated server message block (SMB) functionality now also supports SMB over QUIC, which enables secure access to files over the internet without a VPN. This could be a significant improvement for hybrid work environments.
Additionally, Windows Server 2025 now offers a HotPatching subscription, which allows users to apply security updates without rebooting the system. This subscription is available through Azure Arc, which is a good fit for organizations that manage their Windows Servers both in the cloud and on-premises.
Licensing models and price increases
As with previous versions, Windows Server 2025’s licensing structure is split 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 will typically require the more expensive Datacenter edition.
In addition to these existing licensing models, Microsoft now offers a pay-as-you-go (PAYG) option through Azure Arc. This PAYG model allows companies to be more flexible with their license usage based on actual need, which can be beneficial for organizations looking to vary their costs. However, this model is primarily intended for hybrid or cloud-based environments and may be less beneficial for fully on-premises infrastructures.
A key point of note with Windows Server 2025 is the 10% price increase over Windows Server 2022. While the increase applies to both editions, the mandatory purchase of client access licenses (CALs) remains in place for both the Standard and Datacenter editions. For organizations with a large number of users or devices, this means their access costs could increase further beyond the base license.
Cloud integration and hybrid options
With Windows Server 2025, Microsoft is strongly committed to supporting hybrid cloud models. The integration with Azure Arc makes it easier to centrally manage on-premises Windows Servers and use Azure services. This allows organizations to better manage their networking, 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.
With this strong connection to Azure Arc and the payg licensing option, Microsoft is clearly targeting organizations that work or want to work in a hybrid way. At the same time, the use of these new features requires a connection to the cloud, which means that optimal use of these functionalities is strongly linked 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, enhanced networking options, and SMB over QUIC are useful 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 especially attractive for hybrid and cloud-based structures.
The 10% price increase and mandatory CALs mean that organizations must carefully analyze their cost structure to make a responsible upgrade decision.