Microsoft Announces Significant Price Hikes for On-Premises Server Products
Starting in July and extending to August, Microsoft has revealed substantial price increases for several of its on-premises server products. These adjustments, which reach as high as 20%, are poised to have a direct financial impact on businesses relying on on-premises infrastructure.
Specific Increases for Standalone Server Products
Notably, standalone products such as SharePoint Server, Exchange Server, and Skype for Business Server will experience a price hike of 10% this month. Furthermore, the prices for the Core Client Access License (CAL) Suite and the Enterprise CAL Suite are set to increase by 15% and 20% respectively.
Exclusions: Cloud Services Remain Unaffected
It is crucial to highlight that these increases exclusively impact the on-premises versions of these software products. In contrast, cloud-based services such as SharePoint Online, Exchange Online, and Microsoft Teams will not see any price changes.
Transition to Modern Lifecycle Policy
Both Exchange Server and Skype for Business are being aligned with Microsoft’s Modern Lifecycle Policy. This transition means that these applications will benefit from continuous updates, rather than the traditional major version updates seen every few years. To use these products, businesses must hold an active Software Assurance (SA) or a cloud subscription license for all users and devices accessing the platforms.
Reasons Behind the Price Increases
Microsoft attributes these price increases in part to the ongoing costs associated with maintaining and updating their on-premises products. Another driving factor is the noticeable decline in revenues within this segment. As revealed in Microsoft’s Q2 earnings report, revenue from on-premises server products dropped by 3%. These price adjustments may help boost revenues while encouraging customers to migrate towards Microsoft’s cloud offerings.
For further insights, you can read the official announcement here.
To stay updated on the latest regarding Microsoft’s pricing strategies for its server products, check out additional coverage here.
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