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Microsoft Licensing Update – October 2024

New Server Releases

Systems Center 2025

Systems Center 2025 will be generally available November 1, 2024. The pricing was announced to be a 10% increase over the 2022 version, so existing Systems Center users can expect to see an increase in renewal costs when their licenses are set to renew.  Key updates to the new release include updates to security, infrastructure modernization like the ability to manage and monitor Azure Stack HCI clusters with VMM and SCOM, improved data protection, and better support for managing heterogeneous environments like improved management of Linux distributions and arc-enabled capabilities for managing VMs in datacenters.  The licensing model has not changed, new purchases still require the subscription component of software assurance to be added. 

Windows Server 2025

Windows Server 2025 is now in public preview and was announced to be released in the second half of 2024.  While Microsoft has not announced any details about the pricing, there is an expected increase in the cost.  The other interesting thing to note with this release is that some of the features, like hotpatching through Azure Arc will require on premises servers to be enrolled in Arc, triggering an additional monthly subscription cost for the hotpatching service. This is in line with a growing trend of Microsoft subscription elements being added to perpetual licenses.  Here are some brief points about the expected improvements to Windows Server with the new release.

  • Advanced Security:
    • Modern identity management with new security capabilities in Active Directory
    • Server Message Block (SMB) improvements
    • Hotpatching capabilities through Azure Arc, reducing the need for reboots during security updates
  • Hybrid Cloud Innovations:
    • Software-defined networking (SDN) multisite features for native L2 and L3 connectivity across multiple locations
    • Enhanced hybrid and multicloud management tools that integrate Azure capabilities into your datacenter
  • Performance and Scalability:
    • GPU partitioning for Hyper-V, allowing better resource allocation for AI and machine learning workloads
    • Improved storage performance with faster options and better integration with hybrid cloud environments

Exchange Server SE

Three new releases are coming for Exchange server over the next year and a half, and this new release could impact customers still running an on prem Exchange server, but also those in a hybrid model.

A cumulative update for Exchange Server 2019 – version CU15, is expected by the end of 2024.  The new Exchange Server SE will be released early in the second half of 2025 (Exchange Server SE RTM), with the first cumulative update coming by the end of 2025 (Exchange Server SE CU1).  Exchange Server 2016 and all versions of 2019 will be out of support by October 14th, 2025, the expectation being that customers will upgrade to the new release quickly.    License only purchases of Exchange server will no longer be available, on prem servers must be purchased with software assurance or the rights obtained through M365 E3/E5 end user cloud subscription.

One other thing to note, the Exchange Server SE initial release will not include any feature updates. Here is the Microsoft wording on that:

Exchange Server 2016 and Exchange Server 2019 reach end of support on October 14, 2025. To enable quick and easy in-place upgrades from Exchange Server 2019, we have purposely either pulled new features forward into Exchange Server 2019 CU15 or pushed them to Exchange Server SE CU1 or later, leaving the Exchange SE RTM to be a branding update that introduces new lifecycle and support policies. By moving to Exchange Server SE RTM, your servers are on the supported path to Exchange SE CU1. Once Exchange SE CU1 is released, all older versions will be out of support. We have more features planned after Exchange SE CU1, so Exchange Server development continues.

Skype Server SE

Last, and likely least important is the new release of Skype Server due out late 2025.  Similar to the Exchange release plans, a cumulative update for Skype for Business Server 2019 is being released by the end 2024 with a new full version expected early in Q3 of 2025. New feature in CU8 for Skype for Business Server 2019 include persistent chat and a modern admin control panel.  As well, there will be a subscription component that is mandatory for new purchases, the servers and CALs will be required to be covered by subscription licenses or active software assurance. For additional information about the licensing model, use rights or clarification on any of the above, please reach out to the Invero team. 

If you have any licensing questions we are here to help. Please contact us and we would be happy to assist.