Microsoft Raises Server Prices: 10% Increase Coming

Despite Microsoft’s ongoing efforts to steer enterprises toward cloud-based product subscriptions, a segment of organizations still require on-premises deployments. As a result, these businesses must purchase licenses for server products intended for local installations.

Microsoft recently announced a 10% price increase on all standalone on-premises server products, including SharePoint Server, Exchange Server, and Skype for Business Server. The new pricing will take effect in July 2025. According to the company, the adjustment is intended to support the continued maintenance and enhancement of on-premises solutions, delivering greater value to customers.

Beginning in July 2025, Microsoft will officially launch the new subscription-based versions of Microsoft Exchange Server and Microsoft Skype for Business. Meanwhile, the lifecycle of Microsoft Exchange Server 2016/2019 is set to conclude on October 14, 2025. Enterprises that still require on-premises Exchange deployments will need to adopt the SE (Subscription Edition) version.

For context, Microsoft has not released new perpetual versions of Exchange Server beyond 2019—there are no 2021 or 2024 editions. Instead, the company has introduced the Subscription Edition as a replacement.

Microsoft now offers the following options for enterprise customers:

• Eligible cloud subscription licenses such as Microsoft 365 E3/E5, in which case all Exchange Server SE users must hold E3 or E5 licenses.
• Server and CAL (Client Access License) licenses coupled with Software Assurance (SA) for Exchange Server 2016/2019, which grants access to Exchange Server SE and its updates.
• Server and CAL licenses along with SA for Exchange Server SE, providing rights to use and receive updates for the SE version.

While the differences among these options are subtle, the core requirement remains: organizations must provide valid Software Assurance or cloud subscription licenses for all users to continue deploying and using Microsoft’s server products on-premises. This reflects Microsoft’s strategy to maintain on-premises offerings while promoting its subscription-based services.

Additionally, Microsoft will raise the prices of its Core CAL Suite and Enterprise CAL Suite by 15% and 20%, respectively. These new prices will also take effect on July 1, 2025, impacting both new purchases and renewals from that date forward.

Notably, Microsoft has not adjusted pricing for its cloud-based services—SharePoint Online, Exchange Online, and Microsoft Teams remain unaffected. These pricing changes underscore Microsoft’s dual approach: advancing its cloud-first agenda while continuing to offer viable solutions for customers committed to on-premises infrastructures.

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