Microsoft is increasing the prices of its on-premises server products by up to 20%, effective this month. Organizations relying on local infrastructure can expect significant cost increases for several essential services.
Starting in July, prices for SharePoint Server, Exchange Server, and Skype for Business Server will rise by 10%. Additionally, the Core CAL Suite will see a 15% increase while the Enterprise CAL Suite will go up by 20%. It’s important to note that these adjustments only apply to standalone on-premises products; Microsoft’s cloud offerings, including SharePoint Online and Exchange Online, will not be affected.
Microsoft had previously informed users about these pricing changes, which are now officially in effect. In tandem with the new prices, Microsoft is transitioning to updated subscription-based server models. Both Exchange Server Subscription Edition and Skype for Business Subscription Edition are now generally available and are covered under Microsoft’s Modern Lifecycle Policy. This means that customers will receive continuous updates instead of waiting years for major version upgrades. To access these new editions, active Software Assurance or a cloud subscription license is required for all users and devices.
In a blog post, Microsoft cited the rising costs associated with supporting on-premises software as a reason for the price increases. Additionally, the company recently reported a 3% decline in on-premises server revenue during its Q2 2025 earnings report, suggesting that the higher prices might be aimed at mitigating this revenue drop while encouraging a shift toward cloud solutions.
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