Microsoft Will Raise On-premises Server Prices: What You Need to Know
Microsoft recently announced it is increasing prices for on-premises server products and licensing. For some organizations, this might be the final push to rethink whether maintaining local servers still makes financial sense.
If your organization still relies on servers for things like email, file sharing or collaboration, now’s the time to review whether the value outweighs the rising costs. These increases aren’t small, and they come with the usual operational headaches: aging hardware, license complexity and maintenance responsibilities.
These new prices will take effect soon, so here are the important dates and details you need to know.
Important Dates and Details
Start date: Beginning July 1, the following increases will take effect:
- 10% increase for standalone on-premises server products (SharePoint Server, Exchange Server and Skype for Business Server)
- 15% increase for Core CAL (client access license) Suite
- 20% increase for Enterprise CAL Suite
These changes only apply to on-premises server products and don’t include SharePoint Online, Exchange Online or Microsoft Teams purchased through Microsoft 365.
The Core CAL Suite contains the following licenses:
- Windows Server CAL
- Exchange Server Standard CAL
- SharePoint Server Standard CAL
- Skype for Business Standard CAL
- Microsoft Endpoint Configuration Manager Client Management License (formally System Center
- Configuration Manager)
- System Center Endpoint Protection Client Management License
- Skype for Business Server Standard CAL
“With cloud services, you won’t have as much control as you do with a server, but you’ll get enterprise-grade security from your provider and scaling up or down is much easier.”
The Enterprise CAL Suite contains the following licenses:
- All of the components of the Core CAL Suite (listed above)
- Exchange Server Enterprise CAL with Services*
- Exchange Online Archiving for Exchange Server
- SharePoint Server Enterprise CAL
- Skype for Business Server Enterprise CAL
- Windows Server Active Directory Rights Management Services CAL
- Advanced Threat Analytics Client Management License
- Microsoft Audit and Control Management Server CAL
*Includes Data Loss Prevention and Exchange Online Protection
Time to Move to the Cloud?
Shifting business operations to the cloud might be a more cost-effective option for your organization. We’ve helped several clients migrate to the cloud, as it offers a convenient way for employees to access company data remotely without using a VPN.
Unlike servers, which generally last three to five years and are likely to fail more the older they get, cloud services have no limit to their lifespan. Additionally, the maintenance and upgrades for cloud services aren’t your responsibility, whereas you would handle those costs for your server.
With cloud services, you won’t have as much control as you do with a server, but you’ll get enterprise-grade security from your provider and scaling up or down is much easier.
Microsoft Servers
If you have questions about the Microsoft on-premises server price increase or want to learn more about cloud solutions, please email us at support@hungerford.tech or call us at (616) 949-4020.
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