Microsoft has announced a price increase for its on-premises server products, set to take effect this July. Users can expect noticeable hikes in costs for several essential services.
The price of SharePoint Server, Exchange Server, and Skype for Business Server will rise by 10%. More significantly, Microsoft’s Core CAL Suite will see a 15% increase, while the Enterprise CAL Suite’s price will surge by 20%.
It’s important to note that these changes pertain only to standalone on-premises products. Microsoft’s cloud offerings such as SharePoint Online and Exchange Online will not be affected. The company previously signaled these adjustments, and they are now officially in effect.
In conjunction with these price changes, Microsoft is rolling out updated subscription-based server models, including the Exchange Server Subscription Edition and Skype for Business Subscription Edition. These revised editions fall under Microsoft’s Modern Lifecycle Policy, meaning that customers will receive continuous updates rather than waiting for major overhauls every few years. Access to these new models requires active Software Assurance or a cloud subscription license that covers all users and devices.
In a recent blog post, Microsoft attributed the price increase to the ongoing costs associated with supporting on-premises software, alongside a backdrop of declining revenue. During its Q2 2025 earnings call, the company reported a 3% dip in on-premises server revenue, indicating that the increased prices may be a strategy to mitigate this decline while encouraging businesses to move towards cloud solutions.
For more details, you can visit Microsoft’s official blog regarding licensing and pricing updates.
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