
Microsoft has announced that, beginning in July 2025, it will implement price adjustments for its on-premises server products, with some seeing increases of up to 20%. Enterprises that continue to rely exclusively on local server deployments will soon feel the financial strain brought about by these hikes.
Among the affected products are Microsoft SharePoint Server, Microsoft Exchange Server, and Microsoft Skype for Business Server, each of which will see a 10% price increase this month.
In addition, the prices of Microsoft’s Client Access License (CAL) Suite and Enterprise CAL Suite will rise by 15% and 20%, respectively. These CAL suites follow the Server + CAL licensing model, which includes both the rights to install the server software and the licenses required for employees to connect to and utilize server resources.
These pricing changes apply exclusively to on-premises server offerings and will not affect cloud-based subscription services such as SharePoint Online, Exchange Online, or Microsoft Teams. In fact, Microsoft has made no secret of its preference for organizations to transition toward cloud subscriptions, rather than maintaining and operating their own in-house server infrastructure.
Furthermore, Microsoft has reminded enterprises that subscription-based editions of Microsoft Exchange Server and Microsoft Skype for Business—referred to as Subscription Editions or SE versions—are now fully available.
These cloud-based editions follow an update model akin to Microsoft 365, offering continuous, monthly updates rather than the traditional perpetual licensing model, which typically provides only security updates and releases major upgrades every three years or so.
As for the rationale behind the price increases, Microsoft cites the ongoing need for investment to ensure continued support and innovation for its on-premises products. However, financial reports indicate a steady decline in revenue from these legacy server offerings—highlighting Microsoft’s clear desire to shepherd enterprises toward cloud-based solutions, which promise both higher profitability and lower maintenance overhead.