Microsoft is set to implement a significant change in its Windows Server 2025 offerings by introducing a subscription service for its hot patching feature, which allows businesses to apply security updates without requiring server reboots. Effective July 1, 2025, organizations utilizing Windows Server 2025 Standard or Datacenter editions will be charged $1.50 per CPU core per month for this service. This new fee will affect only those servers operating outside of Microsoft’s Azure cloud environment.
The hot patching process, which has previously been available for free to users of Microsoft’s cloud services, enables companies to install essential security patches without interrupting service. This is particularly beneficial for IT departments, as it reduces downtime and helps maintain the availability of critical systems. According to Microsoft, the new subscription model could decrease the number of necessary reboots from twelve per year to just four, as only the most significant updates will still require a restart.
To qualify for the hot patching service, servers must be connected to Azure Arc, Microsoft’s management tool that allows organizations to oversee their systems across various environments. This requirement is crucial for businesses that wish to continue benefiting from hot patching without incurring downtime. Microsoft’s Product Marketing Manager, Janine Patrick, and Senior Program Manager, Artem Pronichkin, explained that while some updates may still necessitate reboots for security reasons, the overall goal is to streamline the update process.
"Hot patching can save significant time and ease the inconvenience of a traditional 'Patch Tuesday,'" the duo noted, emphasizing the operational advantages it brings to system administrators. However, organizations currently enrolled in the free preview of hot patching will need to disenroll by June 30, 2025, if they prefer not to transition to the paid subscription model.
The new subscription service comes at a time when interest in server technology is surging, particularly due to the ongoing boom in artificial intelligence (AI). The AI server sector is projected to reach $837.83 billion by 2030, growing at an impressive compound annual growth rate (CAGR) of 34.3% from 2024 to 2030. This growth could potentially bolster Microsoft’s revenue from the hot patching service, as more businesses seek reliable and efficient server management solutions.
As the tech giant prepares to unveil its earnings report this Wednesday, analysts anticipate earnings per share of $3.22 alongside revenue of $68.43 billion. With a consensus rating of Strong Buy based on 31 Buy and four Hold ratings over the last three months, Microsoft’s stock is projected to see a potential upside of 25.36%, with an average price target of $484.86.
This subscription model for hot patching is reminiscent of previous moves by Microsoft, which has faced scrutiny over its monetization strategies for features that were once considered essential services. Critics argue that charging for hot patching could create a disparity in security levels among users, as those who opt not to pay may face increased vulnerabilities.
Despite these concerns, Microsoft maintains that the benefits of hot patching justify the costs. The company has highlighted that the feature represents a significant innovation for Windows Server 2025, setting it apart from earlier versions. The introduction of hot patching for on-premises servers marks a notable advancement in the way organizations manage their IT infrastructure.
For those who do not wish to adopt the subscription model, Microsoft will continue to provide regular updates on its existing schedule, which includes four baseline updates each year in January, April, July, and October. These baseline updates will require reboots, but the hot patching service aims to minimize disruptions for users during the other months.
As the deadline for disenrollment approaches, many businesses are weighing their options. Some IT professionals are questioning whether the convenience of hot patching is worth the additional monthly expense. However, for organizations that prioritize uptime and seamless operations, the new service may prove to be a valuable investment.
In summary, Microsoft’s new subscription service for hot patching is set to revolutionize the way businesses manage their server updates, offering a solution that minimizes downtime and enhances security. With the rapid growth of the AI sector and increasing demand for efficient server management, this move could position Microsoft favorably in a competitive market.
