Price increases for Microsoft on-premises products were announced, impacting companies reliant on local infrastructure. Standalone server products will rise by 10 percent, while Client Access License (CAL) Suites will increase up to 20 percent. These changes coincide with a 3 percent revenue drop in on-premises server products. Microsoft aims to enhance profitability and encourage cloud adoption. Additionally, Subscription Editions of Exchange Server and Skype for Business Server will be available starting July 2025, requiring active Software Assurance or cloud subscriptions, while ensuring support for on-premises customers continues.
The price increases, which were announced in April, will directly affect companies that still rely on local infrastructure. In some cases, the increase will be as high as 20 percent.
Microsoft cites ongoing maintenance and necessary updates as the reason for the price increases. At the same time, revenue from on-premises server products fell by 3 percent in the second quarter of the current fiscal year.
These latest price changes have been postponed by one month compared to the original announcement in April.
The standalone server products - SharePoint Server, Exchange Server, and Skype for Business Server - will increase by 10 percent as of July 1, 2025.
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