7/31/2025

New Features in Windows Server 2025 Datacenter

Windows Server 2025 Datacenter introduces several innovative features that enhance security, performance, virtualization, and hybrid cloud capabilities. These features are unique compared to previous versions (e.g., Windows Server 2022, 2019) and cater to enterprises with extensive virtualization and datacenter needs. Below are the key new features:

1. Enhanced Virtualization and Hyper-V Capabilities

  1. GPU Partitioning (GPU-P): Allows sharing a single GPU across multiple virtual machines (VMs) with support for live migration and failover clustering. This is ideal for AI, machine learning, and graphics-intensive workloads, a feature not available in earlier versions.
  2. Dynamic Processor Compatibility: Enables live migration of VMs between Hyper-V hosts with different CPU types by dynamically adjusting to compatible CPU features, eliminating the need for identical processors across hosts.
  3. Increased VM Scalability: Supports up to 2,048 virtual processors and 29.7 terabytes of RAM for Generation 2 VMs, significantly enhancing scalability for large-scale virtualized environments.

2. Advanced Security Enhancements

  1. Next-Generation Active Directory (AD): Introduces a functional level 10 with a 32k database page size (up from 8k), improving scalability and performance for large AD deployments. New security protocols and encryption hardening protect against evolving threats.
  2. Delegated Managed Service Accounts (dMSA): A new account type that minimizes security risks by automating password management and delegating specific permissions for resource access, reducing manual intervention compared to traditional service accounts.
  3. Credential Guard Enabled by Default: Provides enhanced protection against credential theft attacks, a feature now standard in Windows Server 2025 Datacenter.
  4. SMB Hardening with QUIC: Extends SMB over QUIC to both Standard and Datacenter editions (previously exclusive to Azure Edition). This enables secure, low-latency, encrypted file share access over the internet, with protections against man-in-the-middle, relay, and spoofing attacks.
  5. Windows Local Administrator Password Solution (LAPS) Improvements: Introduces new Password Complexity settings for generating readable passphrases using standardized word lists, enhancing usability while maintaining security.

3. Hybrid Cloud and Azure Integration

  1. Azure Arc Setup as Feature on Demand: Installed by default with a user-friendly wizard and system tray icon, simplifying onboarding to Azure Arc for managing on-premises servers with Azure services like Update Manager and Change Tracking.
  2. Hotpatching via Azure Arc: A subscription-based feature (in preview) that delivers security updates with minimal reboots, reducing downtime for on-premises and multicloud environments. This is a significant leap from previous versions, which relied on traditional patching methods.
  3. Pay-as-You-Go (PAYG) Licensing: A new subscription-based licensing model tied to Azure Arc, allowing organizations to pay per core-hour for temporary workloads without needing perpetual licenses. This is exclusive to Windows Server 2025 and not available in prior versions.

4. Performance and Management Improvements

  1. SMB Compression with LZ4 Algorithm: Adds support for the industry-standard LZ4 compression algorithm (in addition to existing XPRESS, LZNT1, and others), improving file transfer performance over networks.
  2. Modernized User Interface: Adopts the Windows 11 design language with a Mica-designed Task Manager, customizable Start menu with administrative tools, and native Bluetooth support for wireless peripherals, enhancing the desktop experience.
  3. DTrace for Real-Time Monitoring: Introduces DTrace, a powerful tool for real-time system diagnostics and performance monitoring, not available in previous Windows Server versions.
  4. Enhanced File Compression: Supports ZIP, 7z, and TAR formats natively, streamlining file management for administrators.
  5. Replication Priority Order: Allows administrators to prioritize replication with specific partners for Active Directory naming contexts, offering greater flexibility in managing replication scenarios.


5. Removal of Legacy Features for Modernization

  1. Legacy Feature Removal: Removes outdated components like Data Encryption Standard (DES), NTLMv1 authentication, SMTP Server, and WordPad to reduce security risks and maintenance overhead, aligning with modern security standards.

These features collectively make Windows Server 2025 Datacenter a future-ready platform, with significant advancements in virtualization, security, and hybrid cloud integration compared to Windows Server 2022 and earlier.


Pricing and Licensing Analysis: India and US

Windows Server 2025 Datacenter uses a core-based licensing model, requiring licenses for all physical cores in the server (minimum 16 cores per server) and Client Access Licenses (CALs) for each user or device accessing the server. Pricing varies by region due to currency exchange rates, local taxes, and reseller margins. Below is an analysis of pricing and licensing costs in India and the US, based on general trends and available information.

United States

  1. Datacenter Edition Base Price: Approximately $6,771 for a 16-core license. This covers unlimited virtualization rights, making it cost-effective for enterprises with large VM deployments.
  2. Additional Core Licenses: For servers with more than 16 cores, additional licenses are required. A 2-core pack costs around $400–$500, and a 16-core pack may cost $2,500–$3,000, depending on the reseller.
  3. Client Access Licenses (CALs):
  4. User/Device CAL: ~$30–$50 per user or device.
  5. Remote Desktop Services (RDS) CAL: ~$100–$150 per user or device for terminal server functionality.
  6. Pay-as-You-Go (PAYG) Option: A new subscription model priced at approximately $33.58 per core per month (~$0.046 per core per hour) via Azure Arc. No CALs are required for PAYG, except for RDS CALs if used as a terminal server.
  7. Total Cost Example: For a 32-core server with 50 users:
  8. Base license (16 cores): $6,771
  9. Additional 16-core pack: ~$2,500
  10. 50 User CALs: 50 × $40 = $2,000
  11. Total: ~$11,271 (one-time perpetual license) or ~$1,074/month for PAYG (32 cores × $33.58).
  12. Price Increase: Microsoft has announced a 10% price hike for on-premises server products effective July 1, 2025, which may increase the base price to ~$7,448 for a 16-core license.


India

  1. Datacenter Edition Base Price: Approximately ₹5,60,000–₹6,00,000 for a 16-core license, converted from USD pricing (~$6,771 at ₹82–₹85 exchange rate) and adjusted for local taxes and reseller margins.
  2. Additional Core Licenses: A 2-core pack costs ~₹33,000–₹42,000, and a 16-core pack may cost ~₹2,00,000–₹2,50,000.
  3. Client Access Licenses (CALs):
  4. User/Device CAL: ~₹2,500–₹4,200 per user or device.
  5. RDS CAL: ~₹8,300–₹12,500 per user or device.
  6. Pay-as-You-Go (PAYG) Option: Priced at ~₹2,800 per core per month (based on $33.58 at ₹82–₹85 exchange rate). No CALs required, except for RDS CALs.
  7. Total Cost Example: For a 32-core server with 50 users:
  8. Base license (16 cores): ₹5,80,000
  9. Additional 16-core pack: ₹2,25,000
  10. 50 User CALs: 50 × ₹3,500 = ₹1,75,000
  11. Total: ~₹9,80,000 (one-time perpetual license) or ~₹89,600/month for PAYG (32 cores × ₹2,800).
  12. Price Increase: The 10% price hike effective July 1, 2025, may raise the base price to ~₹6,38,000–₹6,60,000 for a 16-core license.

Key Considerations

  1. US vs. India Pricing: India pricing is generally higher in relative terms due to currency conversion, import duties, and local taxes (e.g., GST). However, Microsoft partners in India often offer competitive discounts for bulk or enterprise purchases.
  2. Perpetual vs. PAYG: The perpetual license is cost-effective for long-term use (e.g., >3 years), while PAYG suits temporary or seasonal workloads. PAYG requires an Azure subscription and internet connectivity, which may add minor costs.
  3. CAL Requirements: Both regions require CALs for perpetual licenses, increasing costs for large user bases. PAYG eliminates standard CAL costs, which is a significant saving for organizations with many users/devices.
  4. Price Hike Impact: The upcoming 10% increase (July 2025) makes purchasing before the hike advantageous for perpetual licenses.


Recommendation:

Purchase from cloudretails.comFor organizations in India and the US seeking genuine Windows Server 2025 Datacenter licenses with reliable support, cloudretails.com is highly recommended. Here’s why:

  1. Genuine Licenses: Cloudretails.com is a trusted Microsoft partner, ensuring authentic licenses that comply with Microsoft’s terms, reducing the risk of non-compliance or counterfeit software.
  2. Free Installation Support: They offer complimentary installation and configuration assistance, ensuring a seamless deployment with minimal downtime. This is particularly valuable for enterprises new to Windows Server 2025 or those upgrading from older versions.
  3. Partner Support: Cloudretails.com provides end-to-end support, including pre-sale consultation to select the right licensing model (perpetual or PAYG) and post-sale technical assistance for maintenance and optimization.
  4. Competitive Pricing: As a certified partner, they offer tailored pricing for enterprises, potentially lower than standard retail prices, especially for bulk or volume licensing.
  5. Streamlined Procurement: Their process includes quick delivery of license keys and detailed guidance, making it easy for IT teams to deploy and activate Windows Server 2025 Datacenter.

To maximize value, contact cloudretails.com, to lock in current pricing. Their expertise ensures your organization leverages the full potential of Windows Server 2025 Datacenter’s new features while optimizing costs.