Silver Leaf Solutions | February 2025 Licensing Updates

Staying ahead of licensing changes is critical for cost management and compliance. Here’s a roundup of key updates across Microsoft, IBM, Oracle, and the broader enterprise software landscape for February 2025.

Microsoft Licensing Updates – Key Changes in January 2025

Microsoft has introduced several important updates to its Product Terms, affecting privacy and security policies, Microsoft 365, Azure services, and broader licensing models.

Privacy & Security Terms

Microsoft has streamlined privacy and security-related information under a single Privacy & Security Terms section. Key updates include changes to the Data Protection Addendum (DPA) exceptions, impacting:

• Bing Maps
• Azure FXT Server
• SQL Server
• Visual Studio Subscriptions
• Windows Desktop OS
• Windows Server

Microsoft 365 Enhancements

The Cross-tenant User Data Migration feature now extends to Educational (A-plans), facilitating smoother transitions between institutions.

Microsoft Defender Experts

Updates to the MCA Table and License Prerequisite Table have been introduced, though access issues have been reported. Organizations should verify any changes affecting their licensing requirements.

Azure Services – Text-To-Speech (TTS) Changes

• Service Renaming: Previously known as Azure AI Speech, now rebranded.
• New Compliance Clauses: Customers must ensure appropriate access levels to data.
• Paid Tier Update: Audio generated under the paid tier is now commercially usable.

?

IBM Licensing Clarity – Avoid Costly Misconceptions

Many organizations have faced confusion over IBM’s Software & Support (S&S) policies. A crucial clarification:

• Customers with lapsed S&S agreements are not required to reinstate all existing licenses before purchasing new ones.
• The ‘All or Nothing’ rule applies only at renewal, not for new license purchases.

To avoid unnecessary costs and reinstatement fees, businesses should consult IBM Passport Advantage documentation and expert advisors before making financial commitments.

?

Software Audits in 2025 – What to Expect

Software vendors are intensifying audits this year. Organizations should proactively prepare for potential compliance reviews:

• Microsoft: High audit activity expected, increasing as June 2025 approaches.
• Red Hat (IBM-Owned): IBM’s stringent audit enforcement is influencing Red Hat.
• IBM: Expect increased audit pressure in Q1 2025, aimed at revenue maximization.
• Oracle: Continues aggressive audits, particularly in: Database & Middleware – Often used to push cloud migrations. Java Licensing – A single instance of Java use can trigger an enterprise-wide licensing requirement.

Organizations should conduct internal compliance reviews to minimize risk before vendors initiate audits.

?

Cohesity & Veritas – A Data Protection Powerhouse

Cohesity has completed its acquisition of Veritas' Enterprise Data Protection Business, creating the largest data protection software provider worldwide. This merger benefits customers through:

• Expanded AI-driven security capabilities.
• Continued investment in Veritas & Cohesity products.
• Stronger global support and service networks.
• The most extensive partner ecosystem in the industry.

?

Microsoft Price Increases – Effective April 2025

Microsoft has announced price adjustments effective April 1, 2025, impacting licensing costs across key products:

5% Price Increase:

• Microsoft 365
• Office 365
• Enterprise Mobility + Security
• Windows 365
• Dynamics 365
• Power Platform (including Power BI)

Power BI Pricing Adjustments (Up to 40%)

• Power BI Pro: $14/user/month (from $9.99)
• Power BI Premium Per User: $24/user/month (from $20)

Teams Phone Price Changes (Up to 25%)

• Teams Phone Standard: $10/user/month (from $8)
• Teams Phone Frontline: $5/user/month (from $4)

Organizations should reassess their Microsoft licensing commitments to optimize costs before these changes take effect.

?

VMware Customers Seek Alternatives After Broadcom Acquisition

Broadcom’s acquisition of VMware has led to significant disruptions, with organizations reconsidering their licensing strategies due to:

• Steep cost increases
• Stricter licensing models
• Upfront multi-year commitments

Recent trends:

• Two major UK banks transitioned VMware Software Maintenance and Support to third-party providers.
• Anexia (Austrian cloud provider) migrated 12,000 VMs from VMware to Kernel-based Virtual Machine (KVM) after a 500% licensing cost increase.
• Gartner warns that large-scale VMware migrations (2,000+ VMs) may take up to 48 months, costing $300-$3,000 per VM.

Organizations should evaluate cost-effective alternatives before committing to Broadcom’s new terms.

?

IBM ILMT Update – January 2025

IBM has released ILMT v9.2.38.1, bringing key improvements:

• Default Enablement of REST API for Audit Snapshots
• Fixes for Known Defects
• Published Site Version: IBM License Reporting (ILMT) v9, version 162

Organizations relying on ILMT for IBM sub-capacity licensing should ensure they are running the latest version to avoid potential audit risks.

?

Windows Server Licensing – 2025 Updates

Microsoft has introduced significant changes to Windows Server licensing:

• Hot Patching for on-premises Windows Server 2025 (requires Azure Arc connectivity).
• New Pay-as-You-Go Model via Azure Arc – Allows flexible, temporary capacity scaling.
• Updated Disaster Recovery Rights – Enhancements in Azure Site Recovery usage.
• Expanded Container Support – Now includes IPv6 support and Calico integration.

Organizations should review the full Windows Server Licensing Guide (2025) to understand the cost and cloud integration implications.

?

Need Licensing & Cost Optimization Guidance?

The evolving landscape of Microsoft, IBM, Oracle, and VMware licensing can lead to unexpected costs and compliance challenges. Silver Leaf Solutions specializes in licensing advisory, cost optimization, and compliance support.

Contact us today at [email protected] to discuss how we can optimize your software investments and help you avoid costly compliance pitfalls.