Licensing and pricing updates for on-premises server products coming July 2025

Microsoft

Apr 03, 2025

Microsoft 365 suites continue to be the best choice for delivering value to our customers due to their outstanding performance, scalability and security. However, we recognize the critical ongoing need for on-premises deployments in certain customer environments. In our continued commitment to supporting these customers, we are introducing several licensing and pricing changes to Microsoft’s on-premises server products in July 2025.

General availability of Exchange and Skype for Business Server Subscription Editions

As previously announced, Exchange Server Subscription Edition and Skype for Business Server Subscription Edition will be made generally available in July 2025.

In order to deploy and use Subscription Edition server products, customers must have active Software Assurance (SA) or cloud subscription licenses for all users and devices that access them. The release of Subscription Editions for Exchange Server and Skype for Business Server brings these products into alignment with SharePoint in transitioning from a 3-year version cycle to a “version-less” product with regular updates through the Modern Lifecycle Policy.

Updated pricing for server products and suites

To support ongoing maintenance and updates for Microsoft’s on-premises server products, prices for all standalone on-premises server products (SharePoint Server, Exchange Server, and Skype for Business Server) will increase by 10% this July, alongside general availability of Exchange Server Subscription Edition and Skype for Business Subscription Edition. Prices for our Core CAL Suite and Enterprise CAL Suite, which have been static for some time, will increase by 15% and 20%, respectively. These pricing changes will be effective on July 1, 2025.

Please note that these changes apply exclusively to the on-premises versions of these products. There is no impact to pricing for SharePoint Online, Exchange Online or Microsoft Teams purchased separately or through a Microsoft 365 license.

To learn more about these changes, or to get started on your transition to the cloud, reach out to your Microsoft account team or partner today.

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Updated Apr 03, 2025

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JeremyCarlson

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27 Comments

jt8585
Copper Contributor
May 13, 2025
I am a bit confused on how to plan for these changes.
I'm upgrade 2016 to 2019 right now AND migrating mailbox to EXO so I'm not sure how many E3/E5 or CAL to get. Should I just license everyone for EXO and on-prem server would be properly licensed?
I have hundreds of disabled mailboxes that's not being used but kept. Do I need to delete these mailboxes or is there something else I can do without purchasing license for them?
If I convert mailbox to shared mailbox on 2019, do I still need a license? or I need to move shared mailbox to EXO?
Justin_Shea
Copper Contributor
May 07, 2025
I've seen multiple comments asking what a qualifying Cloud Subscription will be, but so far no responses. When, exactly, are we going to find out what all of our purchase options are going to be?
JeremyTBradshaw
Steel Contributor
May 07, 2025
Trying to do the math on the increased pricing %'s. When I cross reference the data over here - https[:]//macrotrends[.]net/stocks/charts/MSFT/microsoft/gross-profit, it doesn't quite add up:
Microsoft gross profit for the quarter ending December 31, 2024 was $47.833B, a 12.82% increase year-over-year.
Microsoft gross profit for the twelve months ending December 31, 2024 was $181.715B, a 14.48% increase year-over-year.
Microsoft annual gross profit for 2024 was $171.008B, a 17.09% increase from 2023.
Microsoft annual gross profit for 2023 was $146.052B, a 7.69% increase from 2022.
Microsoft annual gross profit for 2022 was $135.62B, a 17.06% increase from 2021.
Jenny55555
Copper Contributor
May 06, 2025
Hello ,
I have some question and would like to consult:
1. Currently using Microsoft Exchange Server 2016, but MS informed that the latest release of "Microsoft Exchange Server Subscription Edition (SE)" in October this year requires at least version 2019 to be updated.
Do you need to purchase services with SA, such as "Exchange Server Standard SLng LSA OLV NL 3Y Aq Y1 AP" to upgrade to the "Microsoft Exchange Server Subscription Edition (SE)" version for free? Is it not possible for "Exchange Server Standard 2019" without SA service?
What support can be obtained after purchasing "Exchange Server Standard SLng LSA OLV NL 3Y Aq Y1 AP" for 3 years? Scope of support?
3. Considering the issue of insufficient quantity of Exchange Server Standard 2016, do I need to purchase the Enterprise version? I noticed that there is no version difference for Microsoft Exchange Server Subscription Edition (SE). Will the upcoming release of Microsoft Exchange Server Subscription Edition (SE) not have differences between Exchange Server Standard and Enterprise? In the current situation, I am facing a shortage of Exchange Server Standard 2016. Which version should I buy or sell that is most suitable for use? And it can support upgrading to Microsoft Exchange Server Subscription Edition (SE)
SebastianDiezibesAG
Copper Contributor
Apr 28, 2025
Hello,
Customers who currently purchase MS Exchange Server (2019) incl. SA and MS Exchange Server (2019) incl. SA for 3 years are allowed to use MS Exchange Server SE, that is clear.
The customers who currently still have the old license model (I am only referring to the name) will hopefully be allowed to renew their SA as normal in 3 years! I hope that customers will not have to buy a new “MS Exchange Server Subscription Edition” in 3 years' time?!
- JeremyCarlson
  Microsoft
  May 02, 2025
  Customers will the legacy licensing model be allowed to renew their SA as normal and continue to use Exchange Server Subscription Edition
maurojunior
Copper Contributor
Apr 16, 2025
Hi Jeremy,
I have a client who uses a competitor's service and wants to use Exchange Server, but we noticed that he is changing to ESSE. Since he does not have any Exchange in his environment, will he be able to purchase the ESSE license and the SA calls for this new installation? OR is ESSE only for those who already have Exchange and want to keep the service running, and a new installation is not possible?
- JeremyCarlson
  Microsoft
  Apr 16, 2025
  Thank you for your question - Exchange Server SE will be available for new purchase.
NatanaelYS1122
Copper Contributor
Apr 13, 2025
Hi Jeremy,
I'm still confuse with how the licensing work with this Exchange SE, just to ensure it's require Exchange SE & CAL to be included with SA. what about with the Windows CAL do we need to be SA too ? as we would prefer do inplace upgrade and still use the existing Windows Server ( 2019 ) at the moment.
- JeremyCarlson
  Microsoft
  Apr 14, 2025
  These changes apply to Exchange and Skype for Business, which have Subscription Edition products coming in July.
heasmc
Copper Contributor
Apr 09, 2025
Hi Jeremy.
How does this affect smtp relay or does it not? We can’t get an answer from our suppliers.

Thank you

Chris
- Nino_Bilic
  Microsoft
  Apr 09, 2025
  Hi Chris - can you provide some context?
  
  Usually, when I think of SMTP relay, I think of two situations:
  
  Organizations who have mailboxes in Exchange Online already, so they do not need on-premises Exchange for mailboxes but want it for SMTP relay scenarios (devices etc.) In this case, would all users not be already licensed by cloud licenses, and if so - if they have E3/E5 then you are covered for server licenses on premises?
  
  Organizations who still have mailboxes on premises and SMTP relay is one of things their Exchange servers need to do (but there are other reasons why they keep Exchange on-premises). In that case, indeed, Exchange servers used for SMTP relay would need to be licensed just as servers hosting mailboxes on premises need to be licensed?
  
  In other words - the "SMTP relay Exchange Server" is not something one would install without either mailboxes in Exchange Online or on-premises, right?
SidneyScholz
Copper Contributor
Apr 08, 2025
Hi Microsoft 🙂
Will the Exchange Server (Subscription Edition) be available in the Microsoft SPLA program?
- JeremyCarlson
  Microsoft
  Apr 08, 2025
  Yes, Exchange Server SE will be available in the Microsoft SPLA program. It should ship in summer along with the release in other channels, but we cannot change the pricing for SPLA until January 1st per our SPLA terms.
  - aurelwap
    Copper Contributor
    May 05, 2025
    Thank you Jeremy, at once a very clear answer on this topic. Highly appreciated as I am sure many Service Providers were really waiting on this. Waiting for the keys and sources to appear in our account and the SPUR to be updated accordingly !
Mairie38
Copper Contributor
Apr 07, 2025
Hello, you need also to clarify for customers running Exchange 2019 without SA.
Do they need to buy (for the second time) Exchange Server Licence + Device/User CALs, and SA for each ?
In case Cloud subscription licenses for O365 is not wanted/possible.
- JeremyCarlson
  Microsoft
  Apr 08, 2025
  Yes, customers without active Software Assurance will need to buy new License and Software Assurance for Server and CAL for Exchange Subscription Edition, or have a qualifying cloud subscription.
  - Mairie38
    Copper Contributor
    Apr 09, 2025
    So it's just a "no go" for people in this case.
    Do you think in real life someone want to pay a second time for the same product, just to activate a contract ? seriously, nobody.
    You kill this product (so sad, I love it...)
    
    Just curious, which is the cheapiest qualifying cloud subscription ?