Introducing Exchange Server Subscription Edition 2025: A Comprehensive Overview

Microsoft has announced the upcoming release of Exchange Server Subscription Edition (SE), set to launch in the third quarter of 2025. This new edition marks a significant shift from the traditional perpetual licensing model to a subscription-based approach, aligning more closely with the licensing model used for Exchange Online.

Key Features and Benefits of Exchange Server Subscription Edition

1. Subscription Licensing:
   • Exchange Server SE will require subscription licenses, similar to Exchange Online. This means organizations will need to purchase licenses through Software Assurance or other subscription models.
   • The traditional perpetual server and Client Access Licenses (CALs) used by previous versions like Exchange 2019 will no longer be supported.
2. Code Consistency:
   • Exchange Server SE will run the same code as Exchange Server 2019 CU15, the final cumulative update for Exchange Server 2019. This ensures a smooth transition for existing users.
   • New functionalities such as TLS 1.3 support and GUI-based certificate management in the Exchange admin center will be included.
3. Upgrade Path:
   • Organizations can transition to Exchange Server SE by performing an in-place upgrade from Exchange Server 2019 CU15. This process is designed to be as straightforward as installing a cumulative update.
   • For those running older versions like Exchange 2016, a more involved upgrade process will be necessary to move to a supported platform.
4. Ongoing Updates:
   • Microsoft plans to release two updates annually for Exchange Server SE, ensuring that organizations stay current with the latest features and security patches.
   • The first functionality update is expected in October 2025.
5. Compatibility:
   • Exchange Server SE will support Windows Server 2025 upon its release.

Licensing and Pricing

• User Subscription Licenses (USLs):
  • Each user accessing Exchange Server SE will need a User Subscription License. This model is similar to the licensing for Exchange Online, where different plans are available based on organizational needs.
  • Three types of subscriptions are available: Exchange Online Kiosk, Exchange Online Plan 1, and Exchange Online Plan 2.
• Additional Services:
  • Customers can opt for additional services such as Exchange Online Protection for advanced security features^.

Transitioning to Exchange Server SE

For organizations planning to adopt Exchange Server SE, it is recommended to:

• Upgrade to Exchange Server 2019 CU14 now and then to CU15 once it becomes available.
• Plan for the transition by understanding the new licensing requirements and preparing for the in-place upgrade process.

Why is Microsoft announcing a subscription-based exchange?

Microsoft is transitioning to a subscription-based model for Exchange Server for several key reasons:

1. Alignment with Industry Trends:
   • The shift to subscription-based services is a broader industry trend. Many software providers are moving towards subscription models to offer continuous updates and support.
2. Consistent Updates and Security:
   • A subscription model allows Microsoft to provide regular updates, including new features, security patches, and technical support. This ensures that organizations always have access to the latest improvements and protections.
3. Simplified Licensing:
   • Subscription licensing simplifies the process for organizations, as it aligns with the licensing model used for Exchange Online. This consistency can make it easier for organizations to manage their licenses and ensure compliance.
4. Enhanced Support and Maintenance:
   • By adopting a subscription model, Microsoft can offer more consistent and reliable support. This includes regular updates and maintenance, which are crucial for maintaining a secure and efficient email infrastructure.
5. Future-Proofing:
   • The subscription model helps future-proof Exchange Server by ensuring it remains relevant and up-to-date with the latest technological advancements and security standards.

Overall, this transition aims to provide a more streamlined, secure, and up-to-date experience for organizations using Exchange Server.

Conclusion

The introduction of Exchange Server Subscription Edition represents a significant evolution in how organizations will manage their on-premises email infrastructure. By adopting a subscription-based model, Microsoft aims to provide more consistent updates and support, ensuring that organizations can maintain a secure and efficient email environment.

Are you considering transitioning to Exchange Server SE? Feel free to ask any questions or share your thoughts!