Kathy Hajewski
Microsoft regularly rolls out new products and licensing updates, and at CloudServus, we’re here to help you stay ahead. From newly released products like HP Anyware for Windows 365 and Microsoft Places to upcoming offerings such as SQL Server 2025 and Windows 10 Extended Security Updates (ESU), these changes may impact your organization’s IT planning and costs. Staying informed ensures your organization remains compliant, efficient, and prepared for what’s next in the Microsoft ecosystem.
Let’s dive into the most recent Microsoft announcements on licensing changes and upcoming products, covering key updates from late 2024 and early 2025.
New Microsoft Entra ID Governance License for Business Guests Coming in 2025
Microsoft is introducing a new Entra ID Governance license specifically for business guests, including contractors, partners, and external collaborators. It is expected to be available in Q2 2025. All users within the scope of Microsoft Entra ID Governance features will require a license, ensuring proper access management and compliance.
This new license will follow a monthly active usage (MAU) model, allowing customers to purchase licenses based on their expected number of business guest users. Pricing will be set at $0.75 per monthly governed identity, making it a scalable and flexible solution for organizations managing external access. The official announcement, including example scenarios and guidance on preparing for the upcoming change, can be found here.
Introducing Microsoft 365 Copilot Chat
On January 15th, 2025, Microsoft introduced Microsoft 365 Copilot Chat, a new AI-powered chat experience that brings pay-as-you-go agents to Microsoft 365 commercial customers. You can try Copilot Chat at m365copilot.com. Copilot Chat enables organizations to integrate AI into daily workflows with:
- Secure, web-grounded chat powered by GPT-4o
- Customizable agents for task automation
- Enterprise-level IT controls for security and management.
Agent usage is measured by "messages," and the cost depends on the total number of messages used by your organization. You can purchase messages via the Copilot Studio meter in Microsoft Azure for $0.01 per message, or choose pre-paid packs that cost $200 for 25,000 messages per month.
You can find the official announcement here and information on how to get start as well as how agent consumption costs are calculated here.
Now Available: Copilot Studio Pay-As-You-Go
Copilot Studio is now available on a Pay-As-You-Go basis starting December 1, 2024. You can choose between:
- The original Capacity Pack: 25,000 messages for $200/month
- Pay-As-You-Go: $0.01 per message
Messages are billed through an Azure Subscription at the end of the month. You can also combine both options, with Capacity Pack messages used first. You can find the Microsoft announcement here and the pricing page here.
Windows 10 Extended Security Updates (ESU) Details Announced
The countdown is on! Windows 10 will officially reach end of support on October 14th, 2025 (except for certain LTSC editions). After this date, devices running Windows 10 will no longer receive security updates, bug fixes, or technical support unless they’re enrolled in the Extended Security Updates (ESU) program.
If your organization needs more time to transition to Windows 11, Microsoft is offering 3 years of ESUs for commercial customers. Here’s what you need to know about pricing and options, including a special offer for cloud-managed updates:
- Windows 365 Cloud PCs and Azure Virtual Desktop (AVD) – ESUs included at no extra cost
- Windows 10 ESU for commercial customers – Starts at $61 per device in year 1, with pricing doubling in year 2 and again in year 3
Organizations should start planning their Windows 11 migration strategy now to avoid escalating costs. Learn more about Windows 10 Extended Security Updates here.
HP Anyware for Windows 365 Now Generally Available in Select Regions
Microsoft has officially announced the general availability of HP Anyware integration with Windows 365 in select regions. This integration allows Small-to-Medium Businesses (SMBs) and Enterprise users, whether they are existing HP Anyware customers or new adopters, to seamlessly connect to their Windows 365 Cloud PCs using the familiar Anyware Manager Enterprise and gateways.
HP Anyware Cloud Gateways are currently available in North America and Northwest Europe, with plans to expand to more regions in the future. Users outside these regions can still access their Cloud PCs with minimal impact on performance.
Check out the official announcement here, an overview datasheet here, and a video showcasing the benefits and setup process below:
Microsoft Places is Now Generally Available
Microsoft has officially launched Microsoft Places, a new solution built on Teams and Microsoft 365 Copilot that enhances the in-office work experience. Designed to make coordinating in-person gatherings and spontaneous meetups easier, Microsoft Places helps colleagues connect when they’re in the office on the same day. Check out the official announcement here and explore the features and licensing details here.
Microsoft Places is available in three feature tiers: core, enhanced, and additional.
- Core features are included with Microsoft 365 Business Basic, Standard, and Premium, as well as Office 365 F3/E1/E3/E5 and Microsoft 365 F3/E3/E5. A Teams license is also required if it's not already included in your plan.
- Enhanced features require a Teams Premium Add-on license.
- Additional features require a Microsoft 365 Copilot license.
Windows 365 Frontline Expands with New Shared Mode in Public Preview
Microsoft has announced the public preview of Shared Mode for Windows 365 Frontline. Check out the official announcement here, the Learn documentation here, and a Microsoft Mechanics video below.
This new mode is designed for scenarios where multiple users need temporary, task-based access to a single Cloud PC on an ad hoc basis. Only one person can use the Cloud PC at a time, and all user data is deleted upon sign-out, ensuring security and a fresh start for the next user.
Shared Mode offers a full Windows experience, is scalable and cost-effective, and can be easily managed through Microsoft Intune, making it an efficient solution for shared work environments. Windows 365 Frontline shared mode is ideal for organizations that need quick, secure access to Cloud PCs for employees who use them on an as-needed basis. Here are some key use cases:
- Onboarding & Training – New hires can log into a "training Cloud PC", where they’ll find necessary onboarding materials.
- Retail & Inventory Management – Floor staff can quickly access a "retail station Cloud PC" to check inventory or assist customers.
- Contractor & Vendor Access – Temporary workers can use a "vendor Cloud PC" for secure, time-limited access to company resources.
Microsoft Announces SQL Server 2025 in Private Preview
Microsoft has officially announced that SQL Server 2025 is now in private preview, with general availability expected in 2025. You can find the official announcement here. While details on potential licensing changes haven’t been confirmed, this release continues SQL Server’s legacy of performance, security, and innovation now with powerful new AI capabilities. SQL Server 2025 is built to be an enterprise AI-ready database that brings AI directly to customers’ data. Key enhancements in this release include:
- AI-Driven Performance & Security – The latest advancements in AI streamline AI application development while maintaining SQL Server’s reputation for security and high performance.
- Microsoft Fabric Integration – Seamlessly connect data to next-generation analytics in Microsoft Fabric, unlocking deeper insights and analytics at scale.
- Hybrid & Cloud-Ready – SQL Server 2025 supports hybrid environments, allowing customers to leverage Azure innovations across cloud, on-premises, and edge deployments.
- Built-In AI & Vector Search – Simplify retrieval-augmented generation (RAG) patterns with secure, high-performance vector support, using familiar T-SQL syntax. This enables a hybrid AI vector search, combining vectors with SQL data for more intelligent data retrieval.
You can stay informed about SQL Server 2025 upgrades and apply for the SQL Server 2025 Community Technology Preview (CTP) here.
At CloudServus, we help organizations optimize Microsoft licensing to maximize value and control costs. Our Microsoft Licensing Assessment ensures your licenses align with your needs — often uncovering savings opportunities businesses overlook.
Many of the clients we work with don’t realize they can switch to more cost-effective O365 plans or customize licenses for better efficiency, that results in average savings of up to 17%.
Let’s find the right Microsoft licensing fit for your business. Contact CloudServus today for a licensing review and explore ways to reduce costs and streamline your Microsoft investment.
