Microsoft has announced significant changes to its on-premises server product licensing and pricing, set to take effect in July 2025. These updates include the introduction of the Exchange Server Subscription Edition and Skype for Business Server Subscription Edition, moving away from a three-year version cycle to a “version-less” model. This shift allows for an ongoing stream of regular updates under the Modern Lifecycle Policy. To utilize these subscription editions, customers must maintain active Software Assurance (SA) or cloud subscription licenses for all users and devices accessing them.
Additionally, a price increase of 10% will affect standalone on-premises server products such as SharePoint Server, Exchange Server, and Skype for Business Server. The Core CAL Suite and Enterprise CAL Suite will see hikes of 15% and 20%, respectively. These adjustments aim to support the continued maintenance and updates of on-premises solutions.
Importantly, the changes will not affect the pricing of cloud-based services like SharePoint Online, Exchange Online, or Microsoft Teams, which are accessible through Microsoft 365 licenses.
These updates reflect Microsoft’s commitment to supporting customers who utilize on-premises deployments while staying aligned with modern lifecycle policies. However, these changes may not be well-received by customers, especially following earlier price increases for Microsoft 365 subscriptions.
For more details on the official announcement, visit here.