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Clarification on Exchange SE Licensing and Upgrade Setup

Narayan Das Kohli 40 Reputation points
2025-03-22T14:22:03.7966667+00:00

Dear Microsoft Team,

I hope this message finds you well. Below is the current setup for our Exchange environment:

  1. Four Servers running Microsoft Exchange Enterprise 2019 with a single product key (CU14) and DAG configuration.

2000 CAL Licenses in place.

I have several questions regarding Exchange SE licensing and our environment setup, which I would appreciate your guidance on:

Do we require separate Exchange SE licenses for all running servers?

Are additional CAL licenses required? or same will be utilized?

What is the cost of Exchange SE licensing?

How does Exchange SE licensing work? share the URLs

Is Exchange SE a cloud-based subscription service? If so, where can we view the subscription details? In the past, we were able to view these in the Exchange ECP panel.

Will our environment remain on-premises, or what is the recommended topology structure?

Does Exchange SE require an Entra ID tenant subscription for services such as licensing or user subscriptions?

How will user licenses work? Are these subscription-based (on-premises or cloud)?

Very confused question is, "Will it be Cloud based or on-prem"

Thank you for your assistance in clarifying these points. I look forward to your response.Dear Microsoft Team,

I hope this message finds you well. Below is the current setup for our Exchange environment:

Four Servers running Microsoft Exchange Enterprise 2019 with a single product key (CU14) and DAG configuration.

2000 CAL Licenses in place.

I have several questions regarding Exchange SE licensing and our environment setup, which I would appreciate your guidance on:

Do we require separate Exchange SE licenses for all running servers?

Are additional CAL licenses required? or same will be utilized?

What is the cost of Exchange SE licensing?

How does Exchange SE licensing work? share the URLs

Is Exchange SE a cloud-based subscription service? If so, where can we view the subscription details? In the past, we were able to view these in the Exchange ECP panel.

Will our environment remain on-premises, or what is the recommended topology structure?

Does Exchange SE require an Entra ID tenant subscription for services such as licensing or user subscriptions?

How will user licenses work? Are these subscription-based (on-premises or cloud)?

Very confused question is, "Will it be Cloud based or on-prem"

Thank you for your assistance in clarifying these points. I look forward to your response.

Exchange | Licensing
Exchange | Licensing

The framework for legally deploying and using Microsoft Exchange Server or Exchange Online, based on server and client access models.


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  1. Scott Schnoll 5 Reputation points
    2025-08-04T23:22:42.92+00:00

    @Narayan Das Kohli Here's some answers for you. Hope they help!

    When you install Exchange Server SE, you need a server license with Software Assurance per-server, and a CAL with Software Assurance for every user and device that accesses your servers. If your existing licenses have Software Assurance, then you are covered. Just maintain your Software Assurance agreement, and you satisfy the license and subscription requirements.

    You can also use cloud subscription licenses instead of CALs, and as long as you maintain your cloud subscription, you satisfy the license and subscription requirements.

    Exchange Server SE works the same way as previous versions. You enter a product key which determines if the server is Standard Edition or Enterprise Edition. There is no activation. No phoning home. No cloud connectivity required. Exchange Server SE is on the honor system w.r.t. that as it has always been.

    To ensure a smooth in-place upgrade, Exchange Server SE RTM will continue to use the Exchange Server 2019 product keys. You won't need to obtain or enter new product keys until at least CU1, which will be out some time next year.

    The only change that is actually happening is that a subscription is now required. Microsoft no longer allows customers to buy Exchange Server licenses without Software Assurance, which you required to maintain as your subscription. That's it. The only change. Everything else is the same.

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