Microsoft is introducing a 5% price uplift on certain CSP software subscriptions from 1 October 2026.

The increase applies specifically to CSP server software subscriptions that are on annual-term commitments and billed monthly.  This includes Windows Server, SQL Server, Windows Server CALs, SQL Server CALs and System Center.  It does not apply to upfront annual billing, or month-to-month subscriptions with no annual commitment.

It does not apply to Microsoft 365, Office 365, Dynamics 365, EMS or other per-seat cloud licences.

The change will apply when affected subscriptions renew on or after 1 October 2026.

While the increase is relatively modest, it provides a good opportunity for organisations to take a closer look at their Microsoft licensing environment. If your infrastructure, users, applications or licensing requirements have changed since your current agreements were put in place, there may be opportunities to right-size your Microsoft ecosystem, remove unnecessary licensing and make sure you are paying for what you actually need.

What is changing?

The 5% price increase applies specifically to CSP server software subscriptions with an annual commitment that are billed monthly.

The affected licences are:

  • Windows Server – 5% increase
  • SQL Server – 5% increase
  • Windows Server CALs – 5% increase
  • SQL Server CALs – 5% increase
  • System Center – 5% increase

 

This is not a blanket increase across Microsoft licensing.

The uplift does not apply to Microsoft 365, Office 365, Dynamics 365, EMS or other per-seat cloud licences.

 

 

What does this mean for existing customers?

If you have an affected subscription, the 5% uplift will be applied when that subscription renews on or after 1 October 2026.

This does not mean all Microsoft licences will increase by 5% on 1 October. The increase applies only to the affected CSP server software subscriptions outlined above.

For organisations with a number of Microsoft subscriptions, the immediate reaction may simply be to accept the increase and continue with the existing setup. However, a renewal is also a useful opportunity to step back and ask whether your current Microsoft environment still reflects the way your business operates today.

 

Is your Microsoft environment still right-sized?

Microsoft environments can evolve considerably over time.

Users join and leave, infrastructure changes, workloads move to the cloud, applications are replaced and organisations adopt new Microsoft services. Licensing arrangements, however, do not always evolve at the same pace.

This can leave businesses with:

  • Licences that are no longer being used
  • Server or application licences that no longer reflect the current infrastructure
  • Duplicate or overlapping Microsoft services
  • Users assigned licences they do not need
  • Licensing that has grown organically without an overall strategy
  • Opportunities to consolidate or change how services are licensed
  • A lack of visibility over what is actually being used and why

The result can be an increasingly complex Microsoft environment where it is difficult to understand exactly what you have, what you need and where your money is going.

The October price increase makes this a good time to review that position.

 

How Xeretec can help

At Xeretec, we take an assessment-led approach to Microsoft licensing and optimisation.

Rather than simply recommending more licences or moving you onto a different licensing model, we can help you establish a clear picture of your current Microsoft tenant and licensing position.

We can work with you to understand:

  • What Microsoft licences and services you currently have
  • How those licences are being used
  • Whether your current licensing matches your users, workloads and infrastructure
  • Where there may be unused, underused or unnecessary licences
  • Whether there are overlaps or opportunities to consolidate
  • How your Microsoft environment could be structured more effectively
  • Where changes could improve efficiency and control costs

From there, we can help you identify practical opportunities to right-size your Microsoft ecosystem, giving you a clearer understanding of what you actually need now and what you may need as your organisation evolves.

This is not about changing your Microsoft environment for the sake of it. It is about making sure your licensing and services support the way your business operates today, rather than paying for an environment built around yesterday’s requirements.

 

Take the opportunity to review your Microsoft environment

The 5% CSP increase may be unavoidable for affected subscriptions, but the wider cost of your Microsoft environment is something you can review.

If your licensing has grown over time, you are unsure what you are currently paying for, or you simply want greater confidence that your Microsoft tenant is properly aligned with your business, Xeretec can help you assess where you are today and identify where improvements can be made.

Speak to Xeretec to review your Microsoft licensing and find out where you could optimise and right-size your Microsoft tenant.

 

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