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Windows Server 2025 Is Coming: What You Need to Know Before Upgrading

By Jake T on 5/3/25

Description: Stay agile and up-to-date with Windows Server 2025. Here's some helpful information as you plan your upgrade.

Microsoft has officially announced Windows Server 2025, and it's more than just another update—it's a major leap forward for businesses looking to modernize their IT infrastructure, enhance security, and better integrate with cloud services like Microsoft Azure.

Whether you're running Windows Server 2012 (which recently reached end-of-support), or currently on 2016, 2019, or even 2022, now is the right time to start planning your next steps. Here’s what you need to know before making the move.

What’s New in Windows Server 2025?

Microsoft is focusing this release on security, hybrid cloud integration, and manageability. Some of the most exciting features include:

Improved Security Capabilities
  • 1. Secured-core server support for enhanced protection against firmware-level attacks.
  • 2. Credential Guard enabled by default for supported devices
  • 3. Enhanced certificate management and SMB over QUIC capabilities

Deeper Azure Integration
  • 1. Azure Arc compatibility enhancements for hybrid environments.
  • 2. Better management of on-premises and cloud resources using Azure Stack HCI and Windows Admin Center.

Hotpatching Support (Even Outside Azure)
  • 1. Windows Server 2025 expands hotpatching—the ability to install updates without rebooting—bringing greater uptime and fewer disruptions.

Performance and Scalability
  • 1. Optimized for modern hardware and workloads with better virtualization and container support.
  • 2. Enhanced networking performance and storage throughput.

Why Upgrade?

If you're still on Windows Server 2012 or 2016, you’re already missing out on major security and support updates. Even for organizations running 2019 or 2022, Windows Server 2025 provides tangible benefits like reduced downtime, better compliance, and simpler cloud integration.

Upgrading is not just about staying current—it’s about building a future-ready IT environment.

About Licensing for Windows Server 2025

Standard licensing for Windows Server 2025 is based on physical cores, with a minimum of 8 cores/processor and 16 cores/server to be compliant.

With a fully licensed physical server for Server 2025 Standard edition, you are automatically granted licenses to run two virtual machines (VM). If you want to run additional VM's on the same machine, for each multiple of all physical core licenses you "stack", you may run two more VM's. So, for example, if you license all physical cores once, you receive the ability to run two VM's. If you "double" the licenses for your physical cores, you may now run four VM's; "triple" and you may run six VM's, and so on.

While "stacking" licenses, as describe above, may be suitable for some use-cases, if you're looking to run a large number of VM's, its highly recommended you instead opt for Server 2025 Datacenter edition for unlimited Virtual Activations and Automatic Virtual Machine Activation (AVMA). This will be much more cost-effective in the long term and simplify license management.

About Windows Server 2025 Client Access Licenses (CALs)

CALs for Server 2025 are separate, and not a replacement for, physical core licensing of Server 2025 itself. You can purchase either a User CAL (single user, unlimited devices) or a Device CAL (single device, unlimited users) for each user and/or device that needs to access the server. You may mix & match which types of CALs you purchase for the same server.

Is New Hardware Required for Windows Server 2025?

New hardware is not required, but highly recommend when upgrading to Server 2025. This will ensure your physical servers are ready to make full use of the latest security and performance enhancements that Server 2025 brings to the table. At Cosmistack, we're a Dell Authorized Partner and can help you configure, finance, and deploy the hardware you need at exceptional pricing.

Key Questions to Ask Before Upgrading
  • 1. What hardware preparations will we need to make for Server 2025
  • 2. Do we need to move to a hybrid or cloud-first model?
  • 3. What licenses will we need?
  • 4. Will our applications and workloads be supported?
  • 5. These are the kinds of questions our team can help answer.

Plan Ahead with Expert Help

Upgrading to a new server OS isn’t just a software change—it’s an opportunity to revisit your infrastructure strategy. Whether you’re running physical servers, virtual machines, or hybrid environments, we can help you:

  • 1. Assess your current setup and readiness for Server 2025
  • 2. Determine the most cost-effective and compliant licensing approach
  • 3. Create a phased rollout plan that minimizes downtime
  • 4. Leverage new features to improve security and performance

Let’s Talk About Your Upgrade Path

Windows Server 2025 is an exciting release—but the best upgrades are the ones that are well planned and professionally executed. Contact us today to schedule a consultation, get a licensing quote, or learn more about how we can help you make the move with confidence.

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Disclaimer: The information provided in this article is for educational and informational purposes only. The techniques, tools, and technologies discussed are intended to be used by individuals with a solid understanding of the subject matter. Readers are entirely responsible for any actions they take based on the content of this article. This blog and its authors do not assume any responsibility for any unintended outcomes, data loss, or issues that may arise from following the instructions or recommendations provided.

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