Microsoft's On-Premises Server Products just got more expensive

Microsoft has unveiled significant updates to the licensing and pricing structure for its on-premises server products, set to take effect in July 2025.

Key updates include the general availability of Exchange Server Subscription Edition and Skype for Business Server Subscription Edition. These products will transition from a three-year version cycle to a “version-less” model, offering regular updates under the Modern Lifecycle Policy. To deploy these subscription editions, customers must have active Software Assurance (SA) or cloud subscription licenses for all users and devices accessing them.

Additionally, Microsoft has announced a 10% price increase for standalone on-premises server products, including SharePoint Server, Exchange Server, and Skype for Business Server. The Core CAL Suite and Enterprise CAL Suite will see price hikes of 15% and 20%, respectively. These adjustments aim to support ongoing maintenance and updates for on-premises solutions.

Significantly, these changes will not impact pricing for cloud-based services such as SharePoint Online, Exchange Online, or Microsoft Teams, available through Microsoft 365 licenses.

In a blog post, Microsoft says these changes reflect the company’s commitment to supporting customers who rely on on-premises deployments while aligning with modern lifecycle policies.

However, the changes might not go well with customers, as we could see earlier this year when the Redmond-based tech giant increased the prices for Microsoft 365 subscriptions.

For more details, you can visit the official announcement here.