Microsoft Announces SPLA On-Premises Price Increases for 2026

Microsoft has confirmed that several on-premises server products in the SPLA (Service Provider License Agreement) channel will experience a price increase of approximately 10%, effective January 1, 2026. The affected offerings include on-premises versions of Exchange, SharePoint and Skype for Business, along with certain legacy Dynamics ERP products. Specifically, Microsoft’s announcement indicates the following price adjustments under SPLA:

• Exchange Server – 10% price increase.

• SharePoint Server – 10% price increase.

• Skype for Business Server – 10% price increase.

• Dynamics GP, Dynamics NAV, Dynamics SL – ~10% price increase for full-user licenses (some limited-user SKUs are excluded).

By contrast, Microsoft stated that Windows Server and SQL Server pricing will remain unchanged in January 2026 (except for any foreign-exchange adjustments). In other words, only the products listed above will incur a 10% price increase under the SPLA on January 1, 2026. (Under SPLA terms, pricing updates occur only once per year on January 1. Check 2025 January 1 price updates.)

Background: New Editions and Licensing Changes

These pricing changes follow Microsoft’s recent updates to its on-premises products. In July 2025, Microsoft released Subscription Edition versions of Exchange Server and Skype for Business Server – the first new on-premises releases for those products since 2019. To support the ongoing maintenance of these on-premises servers, Microsoft simultaneously raised list prices for SharePoint, Exchange and Skype for Business by 10% in volume licensing channels, effective July 1, 2025. Due to SPLA’s annual pricing cycle (which only allows changes on Jan 1), the same 10% increase was deferred for SPLA customers and is set to take effect on January 1, 2026.

In summary, Microsoft’s April 2025 licensing update explained that “prices for all standalone on-premises server products (SharePoint Server, Exchange Server, and Skype for Business Server) will increase by 10%” as of July 1, 2025. The key point for SPLA-hosted providers is that this 10% bump will be applied to their contracts at the start of 2026.

Dynamics and Business Applications Pricing

In addition to the core server products above, Microsoft has also announced price adjustments for Dynamics business applications. Notably, Microsoft has announced a 2025 increase for Dynamics 365 Business Central, effective November 1, 2025, and has indicated that equivalent on-premises products will undergo aligned changes. Under SPLA, the on-premises Dynamics SKUs (Business Central on-premises, Dynamics GP, NAV and SL full-user licenses) will increase roughly 10% on January 1, 2026, mirroring the cloud pricing updates. (By contrast, the SPLA price for Dynamics AX is unchanged on that date.) These changes were announced to align with Microsoft’s broader licensing updates and to support continued product development.

Implications for IT Professionals

IT organizations relying on SPLA hosting models should take note of these upcoming cost changes. The 10% price increase for on-premises Exchange, SharePoint, Skype for Business, and select Dynamics products takes effect on January 1, 2026. Pricing for other major products (like Windows Server and SQL Server) remains flat at that time. IT planners and budgets should be adjusted accordingly. For full details, partners can refer to Microsoft’s official communications and licensing FAQs for on-premises server products.