Microsoft will implement significant price increases for its on-premises server products in July and August 2025.
The price increases, which were announced in April, will directly affect companies that still rely on local infrastructure. In some cases, the increase will be as high as 20 percent.
The standalone server products – SharePoint Server, Exchange Server, and Skype for Business Server – will increase by 10 percent as of July 1, 2025. The prices of the associated Client Access License (CAL) Suites will increase even more. The Core CAL Suite will increase by 15 percent on August 1, and the Enterprise CAL Suite by as much as 20 percent. These latest price changes have been postponed by one month compared to the original announcement in April.
Microsoft cites ongoing maintenance and necessary updates as the reason for the price increases. At the same time, revenue from on-premises server products fell by 3 percent in the second quarter of the current fiscal year. The price increases are intended to make this segment more profitable again and subtly push customers toward the cloud.
Subscription Editions generally available
In addition to the price changes, Microsoft is announcing the general availability of the new Exchange Server and Skype for Business Server Subscription Editions. These versions, which will be available in July 2025, move away from the classic three-year version structure. Instead, they will be versionless with continuous updates via the Modern Lifecycle Policy model, similar to SharePoint.
To use these Subscription Editions, active Software Assurance (SA) or a cloud subscription is required for all users and devices that access the servers.
Impact on on-premises only
It is important to note that these price changes apply only to the on-premises versions of the products. Customers using Microsoft 365 licenses or products such as SharePoint Online, Exchange Online, and Microsoft Teams will not be directly affected by the price changes.
Cloud as an alternative
Although Microsoft will continue to support its on-premises customers, the company has made it clear that the future lies in the cloud. The structural price increases, combined with the subscription model and the modernization of server products, are putting additional pressure on organizations to migrate their IT environments to Microsoft 365 or Azure.