Microsoft Licensing Changes for On-Premises Server Products: What You Need to Know (August 2025)
As your trusted Microsoft Cloud Solutions Provider (CSP), 365 Cloud Store is here to keep you informed about the latest licensing and pricing changes impacting Microsoft on-premises server products. While Microsoft 365 remains the most efficient and scalable option for modern workplaces, Microsoft is reaffirming its commitment to organizations with on-premises environments by introducing key updates rolling out in July and August 2025.
Here’s a clear breakdown of what’s changing and how it could affect your organization.
Table of Contents
What’s Changing
1. Launch of Exchange Server SE and Skype for Business Server SE
Effective July 1, 2025, Microsoft officially released the Subscription Editions (SE) of:
Exchange Server
Skype for Business Server
These SE products follow a Modern Lifecycle Policy, which replaces the traditional three-year release cycle. Organizations will receive continuous updates instead of versioned releases, similar to how SharePoint Server SE is managed.
To deploy or use these Subscription Editions, customers must have active Software Assurance (SA) or cloud subscription licenses for all users and devices accessing the servers.
2. Price Increases for On-Premises Server Products
As of July 1, 2025, Microsoft increased prices for its standalone on-premises servers by 10 percent:
Exchange Server
Skype for Business Server
SharePoint Server
This adjustment supports the ongoing development and maintenance of these products.
3. Price Updates to Core CAL and Enterprise CAL Suites
Effective August 1, 2025:
Core CAL Suite pricing will increase by 15 percent
Enterprise CAL Suite pricing will increase by 20 percent
Note for U.S. Indirect Partners: The price increase for CAL Suites on the United States Indirect (Reseller) CRP price list will be phased in, with no more than a 10 percent increase at a time. The first increment will be visible on the August 1, 2025, preview and will take effect on September 1, 2025.
What’s Not Affected
These changes apply only to on-premises versions of Microsoft server products. There is no impact on pricing for:
- Microsoft 365
- Exchange Online
- SharePoint Online
- Microsoft Teams
If your organization uses or is considering a Microsoft 365 subscription, this is a good time to evaluate the long-term cost benefits.
What You Should Do Next
Review your current licensing agreements, especially if your organization uses on-premises servers.
Plan for the transition to Subscription Editions for Exchange Server or Skype for Business Server if applicable.
Notify procurement and IT stakeholders about upcoming pricing changes to adjust budgets accordingly.
Explore cloud licensing options, which may offer greater flexibility and predictable costs.
Spend less on Microsoft licensing without compromising service and support
•Volume discounts
•Flexible billing
•Expert guidance
•24/7 critical admin support
•Flexible billing
•Expert guidance
•24/7 critical admin support
Need Help with your Microsoft Licensing? Contact Us
If you’re unsure how these changes apply to your organization, the 365 Cloud Store team is ready to help. We can walk you through your options, compare on-premises versus cloud-based licensing, and offer guaranteed savings of 3 percent or more compared to Microsoft’s standard pricing.
Written by Iovalli Acevedo Marketing Manager
July 30, 2025
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