What’s Changing in Microsoft Licensing This Fall: Business Central Price Increases, End of Life Deadlines & More

HBS Microsoft Team

July 2, 2025
Read Time: 4 mins

In this article...
Price increases for Microsoft Dynamics 365 Business Central in October 2025
End of Extended Support for Windows 10, Office 2016/2019, and Exchange Server
Pricing updates for on-premises Microsoft products beginning July 1, 2025
FAQs and next steps to stay secure, compliant, and cost-effective

You’ve probably heard that Microsoft is ending support for Windows 10 this fall, but that’s not the only major change on the docket. Microsoft is rolling out a wave of licensing and pricing changes this fall, from increases to Dynamics 365 Business Central to end-of-support for certain versions of Office and Exchange, plus rising costs for key on-prem products.

If your organization depends on Microsoft solutions, now’s the time to get ahead of these changes and make informed decisions about your next steps.

Microsoft Dynamics 365 Business Central Pricing Increases (Effective November 1, 2025)

For the first time in over five years, Microsoft is increasing the price of Dynamics 365 Business Central, reflecting the platform’s growth in features, storage, and business value. Alongside this change, Microsoft is also expanding the included storage capacity per user.

New Microsoft Dynamics 365 Business Central Pricing Breakdown (Annual Billing)

Product

Before Nov. 1, 2025

After Nov. 1, 2025

Business Central Essentials

$70/user with 2GB

$80/user with 3GB

Business Central Premium

$100/user with 3GB

$110/user with 5GB

Business Central Device

$40/user with 1GB

$45/user with 1.5GB

What you should know:

Existing customers will see the increase at renewal.
The current pricing is available until November 1, 2025.
No changes to the monthly billing plan are planned as of now.

Microsoft Dynamics 365 Business Central Price Increase FAQ

Do I need to do anything before the price increase

If you plan to add licenses or renew before November 1, 2025, you can still lock in the current pricing, until renewal.

Will Microsoft increase storage for all license types?

Yes, each license tier will receive additional storage alongside the price adjustment.

End of Support: October 14, 2025

Several Microsoft products will reach the end of extended support this fall. Organizations using these platforms need to plan now to maintain security and compliance.

Windows 10 Pro, Enterprise, and Education

Extended Security Updates (ESUs) will be available for devices running Windows 10. These include only critical and important security updates—no feature updates.

Year 1 Cost: $61 per device
Price doubles each year (up to 3 years max)
Azure VMs running Windows 10 are exempt from additional ESU costs

Windows 10 FAQ

Can I purchase just one year of ESU coverage?

Yes, but if you purchase in Year 2, you must pay for both Year 1 and Year 2 retroactively.

What happens if I skip ESU coverage?

Your devices will no longer receive security updates, leaving them vulnerable to attacks.

Office 2016 and Office 2019

There will be no Extended Security Updates. The apps will continue to work but are considered a security risk post-October 14, 2025.

Options to consider:

Upgrade to Office 2021 or Office 2024
Move to Microsoft 365 (Office 365 cloud licensing)

Office 2016 and Office 2019 FAQ

Can I keep using Office 2016/2019 after support ends?

Yes, but it’s risky—unsupported software won’t receive security patches.

What are my upgrade options?

Office 2021 (retiring in 2026) or Office 2024 (retiring in 2029) for perpetual licenses. Or move to a Microsoft 365 subscription.

Exchange Server 2016 and 2019

There will also be no ESUs for Exchange Server. Organizations must migrate or plan for licensing changes.

Available options:

Migrate to Microsoft 365 (Exchange Online)
Purchase Exchange SE (Subscription Edition) when available
Buy Exchange Server 2019 with Software Assurance (includes rights to SE)

Exchange Server 2016 and 2019 FAQ

What’s the difference between Exchange SE and Exchange Server 2019?

Exchange SE is a subscription model that replaces perpetual licensing. Exchange Server 2019 can be bought now and upgraded to SE later if you have Software Assurance.

Will Exchange SE be available through partners like HBS?

No, it must be purchased directly through Microsoft.

Microsoft On-Premises Price Increases

Microsoft is raising prices on several on-prem server products and CAL suites and beginning to shift these products toward subscription-only availability.

What’s changing:

These changes apply to purchases through licensing channels like Open Value, MPSA, OVS, Campus, and EA. There’s no impact on CSP seat-based licensing.

New subscription model:
Microsoft will offer these server products through a direct-purchase Subscription Edition, available only from Microsoft.

Microsoft On-Prem FAQ

Will I still be able to buy perpetual server licenses from HBS?

Only until Microsoft removes them from CSP. After that, subscription licenses will need to be purchased directly from Microsoft unless paired with Software Assurance through programs like Open Value.

What’s the difference between the subscription-based licenses and traditional perpetual licenses?

Perpetual licenses are a one-time purchase that you own indefinitely, while subscription-based licenses require ongoing payments and provide access only while the subscription is active. Microsoft is shifting toward subscriptions to ensure customers stay current with updates and security patches.

What to Do Next with These Microsoft Changes

Evaluate your current licensing: Know when your renewals hit and whether your org is affected by these changes.
Plan for migrations: If you’re still running Windows 10, Office 2016/2019, or Exchange 2016/2019, start planning your next move.
Talk to a licensing expert: HBS can help you review your current environment and prepare for what’s ahead.

Need Help Navigating These Changes?

HBS is here to help you stay current, secure, and compliant. Our Microsoft Licensing experts are ready to guide you through renewals, upgrades, and license optimization.