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

JeremyCarlson's avatar
JeremyCarlson
Icon for Microsoft rankMicrosoft
Apr 03, 2025

*Update – June 2025: The price increases for the Core CAL Suite and Enterprise CAL Suite will now take effect on August 1, 2025, instead of July 1, as originally announced. Standalone server product pricing changes will still take effect on July 1, 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. 

Resources 

 

 

Updated Jun 11, 2025
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102 Comments

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  • heasmc's avatar
    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 

    • JeremyCarlson's avatar
      JeremyCarlson
      Icon for Microsoft rankMicrosoft
      Jul 01, 2025

      Both SMTP relay or Edge role on premises would require SA and server license. "Management only" server requires SA, but the server license is free.

    • Nino_Bilic's avatar
      Nino_Bilic
      Icon for Microsoft rankMicrosoft
      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?

      • ChrisSIT's avatar
        ChrisSIT
        Copper Contributor
        Jun 27, 2025

        We have all users migrated to Exchange Online with E3/E5 license. We only use on-prem Exch 2016 for mailbox management and mail relay for legacy systems. Previous license model was free via Hybrid Wizard license. Do we need to now purchase Exchange SE licenses or Exchange 2019 licenses with SA or will the free via Hybrid Wizard license cover this situation?

  • SidneyScholz's avatar
    SidneyScholz
    Copper Contributor
    Apr 08, 2025

    Hi Microsoft 🙂

    Will the Exchange Server (Subscription Edition) be available in the Microsoft SPLA program?

    • JeremyCarlson's avatar
      JeremyCarlson
      Icon for Microsoft rankMicrosoft
      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's avatar
        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's avatar
    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's avatar
      JeremyCarlson
      Icon for Microsoft rankMicrosoft
      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's avatar
        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 ?

  • Matthias_Bender's avatar
    Matthias_Bender
    Brass Contributor
    Apr 05, 2025

    Could you please clarify what this means for customer with an Exchange Server 2019 Standard with valid Software Assurance in place. Will these customers be able to upgrade to Exchange Server SE (ignore the CALs for now) without any surcharge? What happens when their current SA period ends - at which rate will they be able to renew their Exchange Server SE subscription?

    • JeremyCarlson's avatar
      JeremyCarlson
      Icon for Microsoft rankMicrosoft
      Apr 09, 2025

      Customers with valid Software Assurance will be able to upgrade to Exchange Server SE at no additional surcharge.  This comes as part of the New Version Rights benefit of SA, which allows customers to upgrade to the latest version of an available product.  Once their current Software Assurance agreement expires, they will need to renew at the current list price.

    • Matthias_Bender's avatar
      Matthias_Bender
      Brass Contributor
      Apr 09, 2025

      Any information, at least on the first part of the question ("Will these customers be able to upgrade to Exchange Server SE (ignore the CALs for now) without any surcharge?") ? JeremyCarlson 

      • JeremyCarlson's avatar
        JeremyCarlson
        Icon for Microsoft rankMicrosoft
        Jul 01, 2025

        Correct - the SA includes the benefit of upgrading in-place to SE without additional cost.

  • Terak's avatar
    Terak
    Copper Contributor
    Apr 04, 2025

    Hello MS - Can you provide some use case examples for pricing? 
    How does it look like for example with 3k of mailboxes on-prem while having Software Assurance (SA) vs. cloud subscription licenses?

    • JeremyCarlson's avatar
      JeremyCarlson
      Icon for Microsoft rankMicrosoft
      Apr 08, 2025

      Because pricing can vary based on your specific licensing agreement, user profile, and deployment scenario, we recommend connecting directly with your Microsoft account team or licensing partner for the most accurate and tailored guidance. They can walk you through potential use cases like the one you mentioned — including comparisons between Software Assurance (SA) and cloud subscription licenses — and help you evaluate the best fit for your organization.

      If you’re not sure who to contact, we’re happy to help point you in the right direction.