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Changes to Microsoft’s licensing model this year will impact subscription costs, product configurations, and long-term planning for infrastructure and compliance.
About this podcast episode
Microsoft is introducing a wide range of updates in 2025 that affect licensing, pricing, product packaging, and hardware requirements. Key developments include subscription cost increases, the unbundling of core services, adjustments to enterprise agreements, and the end-of-life timeline for Windows 10.
This Microsoft podcast episode highlights the most relevant updates and considerations for organizations managing Microsoft environments, focusing on IT cost management, infrastructure planning, and licensing strategy. At the Sourcepass Center of Excellence for Microsoft, our team of Microsoft licensing consultants tracks these changes closely to help businesses stay informed and prepared.
Key Topics Covered
- Microsoft 365 Subscription Pricing
A 5% increase takes effect April 1, 2025, for most subscriptions on annual commitment with monthly payment. Lock in current rates with a 12-month term before that date. - Copilot Licensing Changes
“Copilot Chat” introduces per-action pricing (~$0.30/use), offering flexibility for light users. Full licensing details are still emerging. - Teams Unbundling from E3/E5
Teams is no longer included in new E3/E5 subscriptions. Existing plans retain Teams if uninterrupted. Check auto-renew settings. - Enterprise Agreement (EA) Threshold Update
EA minimums rise to ~6,000 users. Most mid-sized orgs will need to shift to CSP, which offers more flexible terms and scaling. - Windows Server 2025 Licensing
Standard and Datacenter pricing increases by 10%; CALs and RDS CALs by 20%. Both subscription and perpetual models remain. - Windows 10 End of Life
Support ends October 14, 2025. ESUs are available but costly. Many devices will require upgrades to support Windows 11. - Licensing Strategy Considerations
Start a subscription with one license to lock in pricing. Use co-terming and transfers to manage renewals and provider changes.
Stay Informed with Sourcepass MCOE
Licensing and infrastructure changes from Microsoft continue to evolve rapidly, with direct implications for cost management, compliance, and long-term planning. Staying current on these updates is essential for making informed decisions.
For monthly insights like these, subscribe to our YouTube channel or sign up for our article series. As part of our ongoing Microsoft podcast, our Microsoft licensing consultants break down the latest developments with clarity and context so you don’t have to sift through the fine print.
