Microsoft’s Server OS Strategy Pushes Customers to Azure

• Changes in Microsoft’s server OS offerings are pushing customers to adopt Azure services and subscription-based software.
• Most new and enhanced capabilities are delivered on Azure Stack HCI or Windows Server Azure edition rather than on-premises Windows Server.
• Licensing benefits and availability of new services also favor hosting on Azure and on Azure Stack HCI.
• Organizations will find it increasingly difficult to avoid adopting Azure services and subscriptions, even for on-premises deployments.

In addition to Windows Server 2022, Microsoft now offers two other server OSs: Azure Stack HCI and Windows Server Datacenter: Azure edition. Both require subscription-based licensing and include capabilities and licensing benefits not offered for Windows Server on-premises. Similarly, new hosted services like Azure Virtual Desktop are seeing significant investment, but enhancements are not being added to on-premises counterparts like Remote Desktop Services in Windows Server. These trends do not immediately impact existing installations, but organizations adopting new services or refreshing their Windows Server deployments should evaluate how Microsoft’s priorities impact their own requirements and plans over the long term.