Microsoft to Raise Prices for On-Premises Server Products in July

Microsoft has announced a price hike for its on-premises server products starting July 2025, which will impact organizations that continue to use traditional infrastructure. The increase will affect key offerings like Exchange Server SE, Skype for Business SE, and SharePoint Server.

Microsoft is raising the prices of its on-premises server products to support ongoing maintenance, security, and updates. As fewer organizations rely on on-premises solutions, the cost of maintaining these services continues to grow. The new pricing helps cover these increasing expenses while ensuring the products remain secure and functional.

“We recognize the critical ongoing need for on-premises deployments in certain customer environments,” Microsoft explained. “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.”

Microsoft also plans to increase the price of its Core CAL and Enterprise CAL Suites by 15% and 20%, respectively. The Core CAL Suite provides essential licenses for accessing fundamental server products such as Windows Server, Exchange Server, SharePoint Server, and System Center Configuration Manager.

Additionally, the Enterprise CAL suite includes everything in the Core CAL Suite as well as additional licenses for more advanced features and services like Skype for Business Server, Advanced features in Exchange Server, Advanced features in SharePoint Server, and System Center Operations Manager.

Price hike for on-premises server products aligns with release of Exchange Server SE

Microsoft explains that the price changes align with the launch of new subscription editions for Exchange Server and Skype for Business Server. These products are moving to a “version-less” model, with updates delivered through the Modern Lifecycle Policy. It’s important to note that these changes do not affect SharePoint Online, Exchange Online, or Microsoft Teams, which remain available through a Microsoft 365 license.

Last week, Microsoft also raised the prices of its Power BI service, with some tiers seeing increases of up to 40%. Power BI Pro went from $10 to $14 per user per month, while Power BI Premium Per User (PPU) rose from $20 to $24. These new prices took effect on April 1, 2025.

Microsoft notes that existing customers will keep their current rates until their contracts expire. However, all new users will be charged the updated pricing.