As a leading Microsoft partner across all 6 solution designations, Trusted Tech Team prioritizes keeping clients and prospects informed about all Microsoft updates and changes, especially those that impact licensing options and pricing. If your organization uses SharePoint Server, Exchange Server, or Skype for Business Server, now is the time to understand upcoming changes and plan your next steps.
What’s Changing?
Effective July 1, 2025, Microsoft will implement a 10% price increase on SharePoint Server, Exchange Server, and Skype for Business Server. Additionally, Exchange Server and Skype for Business Server will transition to a “general availability" status, meaning they will move to a subscription-based licensing model. This change is especially important for Enterprise Agreement (EA) and Enterprise Subscription Agreement (EAS) customers.
The following additional increases, originally scheduled for July 1, 2025, are now effective August 1, 2025, and as your Microsoft partner, we work diligently to provide you with the most accurate information and updates. Microsoft will apply a 15% price increase on Core CAL Suite and a 20% increase on Enterprise CAL Suite. These changes affect only on-premises versions of these products. There will be no impact on the pricing of Windows Server or SQL Server, and SharePoint Online, Exchange Online, or Microsoft Teams purchased separately or through a Microsoft 365 license are also unaffected.
Why is this Happening?
Microsoft acknowledges the ongoing need for on-premises deployments in certain customer environments. The decision to adjust prices and licensing options reflects Microsoft’s commitment to supporting ongoing maintenance and updates for their on-premises server products. The price change is mainly due to the industry-wide shift toward cloud-based solutions. As more organizations move their operations to the cloud, the demand for on-premises server products has decreased. However, maintaining and updating these legacy systems still requires significant resources. This price adjustment helps ensure continued support, security, and reliability of on-premises products.
The release of Subscription Editions for Exchange Server and Skype for Business Server also aligns these products with SharePoint by transitioning from a 3-year version cycle to a “version-less” product with regular updates through the Modern Lifecycle Policy.
Exchange Server Subscription Edition (SE)
Exchange Server SE is scheduled for release in early Q3 of 2025. It follows the release of Exchange Server 2019 CU15 and will be succeeded by Exchange Server SE CU1. Here’s the release sequence:
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Exchange Server 2019 CU15 – The final Cumulative Update before Exchange Server SE.
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Exchange Server SE RTM – The initial release of SE, which shares code with CU15 but includes a branding update and support policy changes.
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Exchange Server SE CU1 – Will introduce new features and block coexistence with unsupported versions.
New Features when Upgrading to Exchange SE:
Exchange SE was designed for simplicity in scaling, hardware use, and failure isolation. With Exchange SE, Microsoft reduced the server roles to two: the Mailbox and Edge Transport server roles.
Unified Messaging (UM) has been removed from Exchange SE. The Mailbox server in Exchange SE includes all server components from the Exchange 2013 Mailbox and Client Access server roles:
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Client Access services provide authentication, limited redirection, and proxy services. These services do not perform any data rendering and support all common client access protocols: HTTP, POP, IMAP, and SMTP.
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Mailbox services include all the traditional server components found in the Exchange 2013 Mailbox server role except Unified Messaging: the backend client access protocols, Transport service, and Mailbox databases. The Mailbox server handles all activity for the active mailboxes on that server.
SharePoint Subscription Edition (SE):
New and Updated Features in SharePoint SE for:
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Authentication and identity management
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Deployment and upgrade
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Farm Administration
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Health and Monitoring
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Hybrid
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PowerShell
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Search
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Security
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Sites, lists, and libraries
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Storage
Skype for Business Subscription Edition (SE) & Software Assurance (SA)
When it comes to licensing, Skype for Business Server Subscription Edition will follow the same rules as Exchange Server SE and SharePoint Server SE; you need active Software Assurance (SA) to use the product or to purchase the subscription licenses. If the SA expires, you will still retain rights to the 2019 version of the product. Software Assurance is a comprehensive Volume Licensing program that includes a unique set of technologies, services, and rights to help you deploy, manage, and use your Microsoft products more efficiently. Using Software Assurance benefits can help ensure you're maximizing your IT investment. Software Assurance is available to organizations supporting as few as five devices, is only available through Volume Licensing, and is purchased when you buy or renew a Volume Licensing agreement. It is included in some agreements and offered as an optional purchase in others. Your available benefits depend on the types and number of products you purchase, and the size of your organization may influence which benefits are most immediately useful to you.
Core CAL Suite and Enterprise CAL Suite
Both the Core CAL Suite and Enterprise CAL Suite provide access rights to server products and online services. However, they differ in the range of features included. The Enterprise CAL Suite offers a broader set of features and access rights. For instance, the Exchange Server Enterprise CAL is part of the Enterprise CAL Suite, offering advanced capabilities like unified messaging, compliance features, and information protection. These advanced features are not available with the Exchange Server Standard CAL.
Core CAL Suite
The Core CAL Suite is equivalent to the following licenses:
- Windows Server CAL
- Exchange Server Standard CAL
- SharePoint Server Standard CAL
- Skype for Business Standard CAL
- Microsoft Endpoint Configuration Manager Client Management License
- System Center Endpoint Protection Client Management License
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Skype for Business Server Standard CAL
Enterprise CAL Suite
The Enterprise CAL Suite is equivalent to the following licenses:
All of the components of the Core CAL Suite (listed above)
- Exchange Server Enterprise CAL with Services* (Includes Data Loss Prevention and Exchange Online Protection)
- Exchange Online Archiving for Exchange Server
- SharePoint Server Enterprise CAL
- Skype for Business Server Enterprise CAL
- Windows Server Active Directory Rights Management Services CAL
- Advanced Threat Analytics Client Management License
- Microsoft Audit and Control Management Server CAL
Recap of Key Dates and Pricing Changes
Effective July 1, 2025
- 10% price increase on the following on-premises server products:
- SharePoint Server
- Exchange Server
- Skype for Business Server
- General availability of:
- Exchange Server Subscription Edition
- Skype for Business Server Subscription Edition
Effective August 1, 2025
- 15% price increase on Core CAL Suite
- 20% price increase on Enterprise CAL Suite
Understanding the Impact:
Aside from the obvious budgetary implications, it is crucial to understand the upcoming Microsoft licensing changes to ensure you can continue licensing all the solutions your organization needs to operate efficiently. Additionally, it is important to stay aware of all your options to make sure you're getting the most out of your organization’s IT investment.
While there are many different methods for licensing Microsoft’s solutions to meet your organization’s needs, your options boil down to on-premises, hybrid, and cloud-based licensing models. The recent price increase could result in higher upfront costs, and cloud-based models like Microsoft 365 suites continue to be the best choice for delivering value to clients because of their outstanding performance, scalability, and security. However, we recognize the lasting importance of on-premises solutions and the ongoing necessity for on-premises deployments in certain customer environments such as healthcare, finance, and government. Organizations that face strict regulatory compliance, have highly specific customization needs, require predictable costs, or need full control over infrastructure and data are examples of those that require on-premises licensing. Both Microsoft and Trusted Tech Team remain dedicated to continuing support and offering of on-premises solutions.
Managing the Impact
- Review current licensing agreements (EA, CSP, OVL, MPSA, etc.)
- Evaluate cost implications of upcoming renewals.
- Consider your cost-effective option: Is it a hybrid solution, continuing with on-premises licensing, or transitioning to Microsoft 365 for long-term value?
At Trusted Tech, we understand how challenging it can be to navigate Microsoft Solution licensing, especially for on-premises environments. Connect with our Legacy Account Managers for personalized licensing impact analysis, renewals, transition planning to cloud or hybrid models, and Open Value model guidance for Exchange. Thanks to our licensing expertise and incentives from Microsoft, we can offer you the most transparent and competitive pricing on legacy licensing, ensuring your IT investment remains cost-effective. If it's time to migrate to a hybrid or cloud environment, we will also help you right-size your investment and provide a customized solution tailored to your specific needs. Our legacy licensing experts guide you through the complexities and ensure you receive the best options to maximize your IT investment, all while saving an average of 10-20% from your current licensing.
