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Microsoft Licensing Update December 2025: Key Changes You Need to Know Before 2026
Jeroen Hidding
Jeroen entered Microsoft Licensing in 2008 at a Global LSP. Jeroen is specialized in optimizing complex Microsoft licensing requirements from a commercial perspective.
Microsoft Licensing Update ... Microsoft Licensing Update December 2025: Key Changes You Need to Know Before 2026
Jeroen Hidding
With several major announcements from Microsoft Ignite 2025, customers are facing one of the most consequential licensing update cycles in recent years. From the general availability of SQL Server 2025 to new Copilot offerings, promotions, and upcoming enforcement deadlines, the final months of 2025 bring a wave of product, feature, and licensing shifts that organizations cannot afford to overlook.
Below is a consolidated breakdown of the most important updates and what they mean for your licensing strategy heading into 2026.
SQL Server 2025 Now Generally Available
Announced on November 18th at Ignite, Microsoft SQL Server 2025 is officially GA. As anticipated, Microsoft continues to embed AI-driven capabilities directly into the SQL engine to help organizations extract deeper insights from enterprise data.
From a licensing standpoint, here are the biggest changes:
Standard Edition Enhancements
Resource limits have increased to support up to 32 cores and 256 GB of memory.
Resource Governor: Previously available only in Enterprise, it is now included, improving reliability and performance when multiple workloads share a SQL Server instance.
Power BI Report Server Entitlement Update
Previously included only with SQL Server Enterprise (through SQL Server 2022).
Beginning with SQL Server 2025, all editions except Express will now include Power BI Report Server entitlement.
New SQL Developer Edition Standard
Microsoft has long provided a SQL Developer edition with full Enterprise feature testing.
With SQL Server 2025, a new SQL Developer Edition Standard is being introduced, allowing teams to test and validate standard edition-specific functionality.
Express Edition Update
Maximum database size increases from 10 GB (in SQL Server 2022) to 50 GB per database.
For SPLA Customers
SQL Server Web Core edition is being removed starting with SQL Server 2025.
SQL Server 2022 Web Core will continue to be supported until 2033.
Visual Studio 2026 Release
Visual Studio 2026 was released in November, bringing deeper AI integration and overall performance improvements.
From a licensing perspective, no changes: the same editions remain with unchanged use rights.
Microsoft 365 Copilot Business Now Available
Starting December 1st, Microsoft 365 Copilot Business is officially available for customers using the Business suites (Business Basic, Standard, or Premium).
Key Details
Functionally the same as Copilot for Enterprise.
Lower price point.
Capped at 300 licenses, aligned with Business suite limits.
Must be purchased as an add-on.
List price: €19.70 per user/month (annual subscription, paid upfront).
Launch Promotions (through March 31, 2026)
15% discount: M365 Copilot Business (1–300 licenses)
35% discount: Business Standard + Copilot Business (minimum 10 licenses)
25% discount: Business Premium + Copilot Business (minimum 10 licenses)
Ignite 2025 Security Update: Security Compute Units for M365 E5
Microsoft announced that Security Copilot agents will be embedded directly into the flow of work across Microsoft Defender, Entra, Intune, and Purview.
Automatically available to all Microsoft 365 E5 customers starting November 18, 2025.
Rollout continues through the following months.
A 30-day advance notice will be issued before activation.
Microsoft Agent Pre-Purchase Plan
Due to increasing demand for Copilot Studio credits, Microsoft is introducing Agent Commit Units, usable across both Microsoft Foundry and Copilot Studio requests.
Each query type consumes a set number of credits, and organizations with higher volumes can achieve up to a 15% discount.
Upcoming Enforcement and Program Changes
January 15, 2026: Dynamics 365 F&O License Enforcement
All Dynamics 365 customers with subscription renewals on or after this date will be required to have correct license assignments.
If licenses are not properly aligned, the application will not start.
April 1, 2026: CSP programmatic update
End of the free grace period for non-renewed Cloud Solution Provider (CSP) subscriptions .
Introduction of the Extended Service Term (EST) option for CSP.
Updates to Microsoft Product Terms
Microsoft Defender Experts
Microsoft recently added language to distinguish between Core Online Services and Professional Services.
Specific language was also added regarding customer consent for security experts to access certain managed services.
Microsoft Dragon Copilot
Terms have been updated to support the launch of Dragon Copilot for Nursing (available as pay-as-you-go or per-user license).
Windows 365
Terms have been updated to support the launch of Windows 365 Reserve; Windows cloud PCs that are on standby in case of downtime of the physical devices.
Assess How These Updates Impact Your Environment
As Microsoft accelerates its AI roadmap and adjusts entitlements across SQL Server, M365, Copilot, and Dynamics, organizations face a complex set of decisions ahead of 2026 renewals. Ensuring compliance, optimizing spend, and avoiding disruptive enforcement issues will require proactive preparation and clear visibility into your licensing posture.
If you need help assessing how these updates impact your environment or want a strategic plan before the January and April deadlines, our team can guide you through the changes and ensure you remain fully compliant while maximizing value.
Reach out today for a licensing review or tailored advisory session.
Index
Article index
- SQL Server 2025 Now Generally Available
- Visual Studio 2026 Release
- Microsoft 365 Copilot Business Now Available
- Ignite 2025 Security Update: Security Compute Units for M365 E5
- Microsoft Agent Pre-Purchase Plan
- Upcoming Enforcement and Program Changes
- Updates to Microsoft Product Terms
- Assess How These Updates Impact Your Environment