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Microsoft's on-prem Exchange and Skype for Business Server go subscription-only

(2025/07/02)


Microsoft has made Subscription Editions (SE) of Exchange Server and Skype for Business Server generally available, marking an end to year-numbered versions.

Redmond has cut it fine for the updates. The previous versions, Exchange Server 2019 and Skype for Business Server 2019, are due to drop out of extended support on October 14, as are Exchange Server 2016 and Skype for Business Server 2016.

Microsoft has sought to make the transition straightforward for administrators and [1]said that only changes between the last cumulative update for Exchange Server 2019 (CU15) include an update to the license agreement, a name change, a build and version number update, and the rolling up of updates released since CU15. The same applies to [2]Skype for Business Server SE (other than the CU15 part, of course).

[3]

The upgrade is deemed - at least by Microsoft - to be low risk, though [4]we can't imagine any administrators trusting an install without thoroughly testing it in their environments first. A busy few months might therefore lie ahead.

[5]

[6]

Running an organization on an unsupported platform is a huge no-no, not least from a regulatory standpoint, but for organizations that can't or won't make the move to Microsoft's cloud, where Exchange Online and Teams can be found, the company's on-premises products have fulfilled a critical need.

Then there are those organizations that might hold their nose at the thought of all their communications going through a cloud owned by a US-based company, regardless of certain tech giants insisting that their approaches to sovereign computing and storage mean there is no chance of US government agencies unexpectedly demanding access.

[7]

So the on-premises versions of Exchange and Skype for Business continue. Microsoft said the release "demonstrates our commitment to ongoing support for scenarios where on-premises solutions remain critical."

[8]Microsoft pulls plug on generous Azure credit program for startups

[9]Microsoft admits to Intune forgetfulness

[10]Microsoft Copilot joins ChatGPT at the feet of the mighty Atari 2600 Video Chess

[11]Critics blast Microsoft's limited reprieve for those stuck on Windows 10

That said, things are changing, most notably from a licensing perspective. Where once a customer would have bought a perpetual license for their server, Microsoft now expects a regular payment to keep using its software. Stop paying, and you're back to the now-unsupported perpetual version you'd purchased previously.

Microsoft gets twitchy over talk of Europe's tech independence [12]READ MORE

And prices are [13]going up . According to Microsoft: "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 percent."

Some types of licenses will jump in cost by up to 20 percent.

The price increases do not apply to Microsoft's cloud products: SharePoint Online, Exchange Online, or Microsoft Teams.

At the time of the price rise announcements, Directions on Microsoft analyst Rob Helm commented: "The licenses price hikes, the cutoff of old versions, the weak link with new Outlook, they all point to a single message: If you care about Exchange email, get off Exchange Server." ®

Get our [14]Tech Resources



[1] https://techcommunity.microsoft.com/blog/exchange/exchange-server-subscription-edition-se-is-now-available/4424924

[2] https://techcommunity.microsoft.com/blog/skype_for_business_blog/skype-for-business-server-subscription-edition-se-is-now-available/4424925

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aGVXl2bFpHz7u5rqzY-6ygAAAEI&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[4] https://www.theregister.com/2025/04/15/exchange_server_2019/

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aGVXl2bFpHz7u5rqzY-6ygAAAEI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aGVXl2bFpHz7u5rqzY-6ygAAAEI&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aGVXl2bFpHz7u5rqzY-6ygAAAEI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[8] https://www.theregister.com/2025/07/01/microsoft_azure_startup/

[9] https://www.theregister.com/2025/07/01/microsoft_intune_forgetfulness/

[10] https://www.theregister.com/2025/07/01/microsoft_copilot_joins_chatgpt_at/

[11] https://www.theregister.com/2025/07/01/windows_10_updates_criticism/

[12] https://www.theregister.com/2025/04/30/microsoft_getting_nervous_about_europes/

[13] https://techcommunity.microsoft.com/blog/microsoft_365blog/licensing-and-pricing-updates-for-on-premises-server-products-coming-july-2025/4400174

[14] https://whitepapers.theregister.com/



Subscription only

teknopaul

All this is fine while your customers are afloat and growing.

But when times are hard. Forced payments like this will send people out of business. They won't be able to tick over and not invest in the hard times. They will be more likely to shut down. You cannot exist without email these days.

It's starting to happen in the US. These bastards obviously don't care. But they might after it affects their bottom line and after the human impact is un recoverable.

Adobe behaviour is more significant to small agencies. But there are eplent of struggling SMEs at the moment. Microsoft _should_ care about keeping them afloat

Re: Subscription only

Doctor Syntax

"You cannot exist without email these days."

I suppose it depends on what the subscription rates are. Outside of the freebie* gmail/$WhateverMicrosoftCurrentlyCallsIt/ISP service it's reasonable to pay for a email - it costs the MSP to provide it - and the ISP provided service isn't really free anyway.

A bare service using POP3, delete on download isn't going to cost that much per seat but it means individual clients will be storing the emails otherwise you can always run Roundcube etc locally.

* As in -->

You're really paying in kind.

Re: Subscription only

retiredFool

Yep, not that expensive. Costs me 12.80/mo for a cloud server that runs my email/web server. Just not that expensive. And I expect I could reduce the amount even more if I shopped around. Hassle factor of moving everything is not worth it unless they raised prices.

Re: Subscription only

kmorwath

This about on-prem servers - where you can delay updates when the financial numbers are not OK, but still get updates. If a subscription means the code is rolled back to a previous versions, and no updates are available, you start to be in trouble.

MS & C. are shifting the entrepreneurial risk from them to their customers. They want a steady cash flow, so they don't have to research & develop new appealing versions, you will have to pay anyway.

And it looks more and more like protection money than anything else.

Anyway, bad timing by Nadella - the current situation is telling more and more customers cutting their ties with Exchange and Outlook is the right move, since Nadella is turning Outlook too into an Electron monster.

Re: Subscription only

Doctor Syntax

"If a subscription means the code is rolled back to a previous versions, and no updates are available, you start to be in trouble."

Or does it mean no service in which case you're in more trouble.

Re: Subscription only

Excused Boots

I’m struggling to see an easy way that MS ‘could’ roll the code back to a previous version on an on premise device (OK, I wouldn’t entirely put it past them to at least try) it has to be more trouble than it's worth. As I read it, if you stop paying then no more updates including security patches and your on-prem device is frozen at that point.

Now as per the level of QA testing that MS seems to have been employing recently, some might say that’s not a bad thing; but, as the article hints at it leaves you running technically unsupported software on business-critical devices and that could be a bit fat no-no for for some regulated industries, and even for others it will probably invalidate any cyber-security insurance they may have.

I’m sure that within a few months we’ll see all sorts of ‘hacks’ floating for getting updates for ‘unsupported’ servers, and some may even be ‘legit’. Although would many be able to tell the difference between that and some malware laden piece of code written by Kim Jung-un’s second cousin?

Tubz

Microsoft prices up, quality goes down, privacy invasion goes excessive.

KittenHuffer

So business as usual then!

Blackmail via Blacklisting

Mr D Spenser

And don’t forget how easy it is for the giants to block locally run email servers due to “unsecure” certificates, headers, or dns records. What should be brain dead simple isn’t due to rent seeking.

Re: Blackmail via Blacklisting

gryphon

Indeed.

Microsoft are already doing it.

You have to be on a supported version to do 'hybrid' mail between Exchange on-prem and Exchange online.

Too old for this sh*t

I only now have a single client on Exchange, they are happy to take the risks and remain on that version for as long as the clients support it. Others have migrated to imap already rather than cough up per month

Before I get downvoted, it's their decision, I offered the imap option and that is still under review as thre's only a couple of users that use shared calendars / contacts

"To support ongoing maintenance and updates for Microsoft's on-premises server products"

Pascal Monett

I'm sorry, if it's on-prem then your customers are the ones paying for the maintenance of their servers.

You're just making new shitty updates that regularly cause chaos and now you expect to get monthly tequilas out of other people's hard work?

Are you trying to push people to Linux ?

It's like a dog licking it's balls

Anonymous Coward

... because it can.

A couple of years ago, as IT manager I was tasked with reducing IT spend. This was when Adobe were moving everything to subscription only, and quite a hefty one at that (because of all the "AI" they were flinging).

With a bit of digging, worked out that for what the business was doing, there were 2 or 3 ways we could FOSS it and eliminate Adobe completely.

Until the users got upset that rather than "Adobe" on their cv, they'd have a billy-no-mates solution that was unmarketable.

(Personally, that would have made them more valuable, but who am I ?).

Anyway, after sticking with Adobe, they went bust. Which was a shame really, because I (and a team) had swapped out every last trace of subscription software in the backend.

What on earth would a man do with himself if something did not stand in his way?
-- H. G. Wells