Anyone who has worked with the design or installation of Windows Server in recent years is probably wondering which direction we are taking in this book. You see, there are different capability editions, different technical versions, plus different licensing models of Windows Server. Let’s take a few minutes to cover those differences to give you a well-rounded knowledge of the different options, and so that we can define which portions we plan to discuss over the course of this book.
Standard versus Datacenter
When installing the Windows Server 2025 operating system onto a piece of hardware, as you will experience in Chapter 2, Installation and Management, you will encounter two different choices of server capability:
- The first is Server 2025 Standard, which is the default option and one that includes most of your traditional Windows Server roles. While I cannot give you firm details on pricing because that could potentially be different for every company, depending on your agreements with Microsoft, Standard is the cheaper option and is most commonly used for installations of Windows Server 2025.
- Datacenter, on the other hand, is the luxury model. There are some roles and features within Windows Server 2025 that only work with the Datacenter version of the operating system, and they are not available in Standard. If ever you are looking for a new piece of Microsoft technology to serve a purpose in your environment, make sure to check the requirements to find out whether you will have to build a Datacenter server. Keep in mind that Datacenter can cost significantly more money than Standard, so you generally only use it in places where it is actually required. For example, if you are interested in hosting a Storage Spaces Direct (S2D) environment, you will be required to run the Server 2025 Datacenter edition on those servers.
One of the biggest differences between Standard and Datacenter that even small businesses may need to consider is the number of Virtual Machines (VMs) that they can legally host. Out-of-the-box Server 2025 Standard can only run two VMs at any given time, which is a pretty limiting factor if you are looking to build out a Hyper-V server. Datacenter allows you to run an unlimited number of VMs, which makes it a no-brainer when building your virtualization host servers. For running Hyper-V, the Datacenter edition is often the way to go.
There is more information on this topic that makes the previous paragraph complicated. Both Server 2025 Standard and Server 2025 Datacenter have the technical ability to run many VMs. Whether or not you are allowed to do so comes down to licensing. We will discuss more on this topic when we talk about Windows Server licensing structures later in this chapter.
Running a container infrastructure will also impact your decision-making on Windows Server licensing. While your host container server can run an unlimited number of traditional containers, whether that host server is Windows Server Standard or Datacenter, if you want to move into the enhanced world of Hyper-V-isolated containers, similar restrictions apply. A container host server running Windows Server Standard is limited to running two Hyper-V containers, but bumping up your host to Windows Server Datacenter will bring you back into the unlimited category. An easy way to remember this is that each Hyper-V container is essentially its own VM, and so the limit of two applies in the Standard OS, whether talking about regular VMs or Hyper-V container VMs. Again, remember that this is a licensing limitation, not a technical one.
Windows Server 2025 Essentials
Some of you may remember the Small Business Server (SBS) editions of Windows Server, which were sort of an all-in-one variant of the Windows Server operating system, intended to be the one and only server inside a small business environment. While SBS fell by the wayside many years ago, Microsoft has offered an Essentials edition of each Windows Server release since that time, to fill the small business gap. If your organization has fewer than 25 users and fewer than 50 devices, and if you do not intend to grow beyond that point, purchasing and installing Windows Server 2025 Essentials can be a coupon clipper to getting your data infrastructure up and running in a cost-friendly way. Keep in mind that it comes with limitations, and as soon as you want to grow your business to more than 25 users, you’ll have to bite the bullet, purchase Server Standard, and migrate over to it.
Windows Server 2025 Datacenter: Azure Edition
Hold up, what is this thing? The Windows Server 2022 rollout introduced us to this brand-new thing, a special version of Windows Server that obviously has some tie-ins to Azure. But what does this mean for you? Whether or not you will ever touch the new Azure Edition depends on what kinds of things you are doing in the Azure world. If you host virtual machines in Azure, you now have the option of selecting your new VM to run this special Azure Edition, and it then enables some cool new features that are unique to this edition. What is most interesting to me about the latest 2025 release of Azure Edition is that some of the capabilities that you could only find through 2022 Azure Edition have now been ported over into the normal Server 2025 Datacenter. For example, in 2022, you could only do hotpatching and SMB over QUIC if you deployed 2022 Azure Edition. This is no longer the case, and both of those functions exist in normal Server 2025 Datacenter. However, new feature sets were added to 2025 Azure Edition that do not (yet) exist in normal 2025 Datacenter, so you see how this trend continues.
The big catch with Azure Edition is just that—it can only run in an Azure environment. So if you have Azure cloud-hosted VMs, you can now get those VMs to run Azure Edition. Without making this too complicated, since we are talking mostly about on-premise resources in this book, there is one other special scenario where you might be able to run Windows Server 2025 Azure Edition from within the physical walls of your building. That is for those of you running something called Azure Local (formerly known as Azure Stack HCI). The scope of this book does not include Azure Local, but the easiest way to think about it is the point where rubber meets the road for a private cloud, which we already discussed. It is possible to build your own implementation of Azure, right inside your own datacenter, using Azure Local. If you are running a private cloud such as this, you will then be able to run VMs within that environment that use Windows Server 2025 Datacenter: Azure Edition.
Three different user interfaces
Now let’s discuss the different footprints and user interfaces that you can run on your Windows Server 2025 machines. There are two variants of Windows Server that can be used, and we will also fill in some history about a third option that used to exist and is still often a complication in this topic. Choosing the correct interface depends on what capabilities and security you are looking for.
Desktop Experience
This is the most common choice among Windows Servers everywhere. Whether you are building Windows Server 2025 Standard or Datacenter, you have a choice of running Windows Server with or without a graphical user interface. The point-and-click interface with a traditional look and feel is called Desktop Experience. This allows things such as RDPing into your servers, having a traditional desktop, and being able to use the graphical Server Manager right from your logged-in server, and all in all, it is the best way to go if you are new to server administration.
If you are familiar with navigating around inside Windows 11, then you should be able to at least make your way around Windows Server 2025 running Desktop Experience. This is the version of Windows Server 2025 that we will focus on for the majority of this book, and almost all of the screenshots will be taken from within a Desktop Experience environment.
Server Core
As you will see when we install Windows Server 2025 together, the default option for installation is not Desktop Experience. What this means is that choosing the default install path would instead place a headless version of Windows Server onto your machine, most commonly referred to as Server Core.
The nature of being headless makes Server Core faster and more efficient than the Desktop version, which makes sense because it doesn’t have to run all of that extra code and consume all of those extra resources for launching and displaying a huge graphical interface.
Almost anything that you want to do within Windows Server is possible to do on either Server Core or Desktop Experience, the main differences being the interface and security. To be able to use Server Core, you definitely have to be comfortable with a command-line interface (namely PowerShell), and you also have to consider remote server management to be a reliable way of interacting with your servers. We will talk much more about Server Core in Chapter 11, Server Core.
The largest benefit that Server Core brings to the table, other than performance, is security. Most malware that attempts to attack Windows Servers is reliant upon items that exist inside the GUI of Desktop Experience. Since those things aren’t even running inside Server Core—alas, you couldn’t get to a desktop even if you wanted to—attacks against Server Core machines are far, far less successful.
Nano Server – now only for containers
A third platform for Windows Server 2025 does exist, known as Nano Server. This is a tiny version of Windows Server, headless like Server Core but running an even smaller footprint. The last time I booted up Nano Server, it consumed less than 500 MB of data for the complete operating system, which is incredible.
Nano Server was a hot topic surrounding the release of Server 2016, because at that time, Microsoft was pressing forward with plans to include a whole bunch of roles inside Nano Server so that we could start replacing some of our bloated, oversized everyday servers with Nano. It used to be the case that you could use the Windows Server installation media (I suppose you could still make it happen with Server 2016 installation media) to spin out a VHDX file that allowed you to boot into Nano Server and check it out, but that mentality of Nano Server as an actual server has since gone by the wayside.
As of Windows Server version 1803 (we’ll discuss what Server 1803 means in the next section of this chapter), Nano Server is married to the use of containers. In fact, the only way to spin up a Nano Server is to download it as a container base OS image, and then boot that image on an existing container host server. We will discuss both in more detail in Chapter 14, Containers. If you know what containers and modern applications are, and are interested in using them, then you will benefit from learning all there is to know about Nano Server. If you are not in a position to work with containers, you will probably never run into Nano Server in your environment.
Licensing models – what happened to SAC?
Up until the release of Windows Server 2022, you had a decision to make on which licensing model and release cadence you wanted to follow. Microsoft releases some versions of Windows Server, the ones you are likely familiar with, on a 2–3 year basis, and other versions on a biannual cadence. Can you imagine new versions of Windows Server shipping twice a year? I would imagine that to be a very difficult thing to keep up with for both manufacturer and consumer, and as of August 2022, that reality seems to have sunk in as we experienced the demise of this super-aggressive release cadence. Let’s discuss the ways that Windows Server versions roll out and what changed in 2022.
Long-Term Servicing Channel (LTSC)
Some of you probably think that LTSC is a typo, as in previous years, this model was called Long-Term Servicing Branch (LTSB). While you can go with either, and people will generally know what you are talking about, LTSC is now the proper term.
Windows Server 2025 is an LTSC release. Essentially, LTSC releases are what we have always thought of as our traditional Windows Server operating system releases. Server 2008, Server 2008 R2, Server 2012, Server 2012 R2, Server 2016, Server 2019, Server 2022, and now Server 2025 are all LTSC releases. It is Microsoft’s expectation that LTSC versions of Windows Server will continue to be released every 2–3 years, and will include both headless as well as full graphical interface flavors of the operating system.
LTSC versions of Windows Server have always been the most common; indeed, many IT administrators have never even heard of the alternative Semi-Annual Channel (SAC) releases. Anytime that you are building a server with the intention of utilizing Desktop Experience for a fully graphical interface, your only option is LTSC anyway. It has always made the most sense for any servers running with the purpose of a domain controller, certificate server, file server, and so on to run within the context of LTSC.
With LTSC versions of Windows Server, you continue to get the same support we are used to seeing from Microsoft operating systems: five years of mainstream support followed by five years of available extended support.
Throughout this book, we will work and gain experience with Windows Server 2025—the LTSC release, which is now the only release.
Semi-Annual Channel (SAC) (now retired)
While this is now mostly irrelevant, it is still good to understand the history of SAC, and indeed, you may well encounter SAC releases of Windows Server in your IT escapades. The first thing you will notice when stumbling upon an SAC release of Windows Server is the strange naming convention for operating system versions. Rather than calling it Server 2019, you were really running Windows Server 1803, 1809, 1903, 1909, and so on. It followed the same mentality and release cadence that Windows 10 did. What that implies is that these new versions of Windows Server SAC were released at much shorter intervals than LTSC. The SAC channel received two major releases every year—generally in the spring and the fall. Because of this fast release cadence, support for SAC versions of Windows Server lasted for a short 18 months. If you use SAC, you had better get used to always jumping on the latest version shortly after it releases.
If swapping out your server operating systems twice a year sounds daunting, you’re not alone. Thankfully, Microsoft recognizes this and realizes that the general server administrator population is not going to use this model for their regular, everyday servers. Rather, SAC versions of Windows Server were only ever going to be used to run containers and containerized applications. In this new world of flexible application hosting, where applications are being written in ways that the infrastructure resources behind those applications can be spun up or spun down as needed, containers are a very important piece of that DevOps puzzle. If you host or build these kinds of applications, you will almost certainly be using containers—now or in the future. When you find yourself in the position of researching and figuring out containers, you may then stumble on information and documentation that leads you to those older SAC server releases.
It is important to note that SAC versions of Windows Server only came in the Server Core flavor—you’ll find no graphical desktop interface here!
While Microsoft has officially retired SAC licensing and operating systems as of August 2022, customers heavily into containerization may still find some similar benefits by moving to Azure Local (formerly Azure Stack HCI).
License purchase and packs
When defining differences between the Standard and Datacenter versions of Windows Server 2025, we referenced the fact that “out-of-the-box” Server 2025 Standard allows for the running of two VMs, but that it wasn’t a technical limitation and that more VMs were possible. This idea segues into a bit of a confusing topic—the way that Windows Server is licensed. When you purchase “a Windows Server 2025 Standard License,” you are purchasing the rights to install Server 2025 Standard onto one physical piece of hardware, and to run two VMs on top of that host operating system. In effect, you can run three instances of Windows Server 2025 Standard. As soon as you make your move to spin up a third VM, you are required to repurchase the same amount of licensing all over again. Doing so actually gives you the ability to then run a total of four VMs. So if you only need three, well… too bad; you pay for four. Effectively, you repurchase your Windows Server 2025 Standard licensing for every two additional VMs that you need to run.
In addition to considering the number of VMs, the amount of licensing you purchase in the first place depends on the size of your hardware. More specifically, it depends on the processors you have installed.
Core packs (physical server licensing)
Here is where things get a little dicey. You must license each physical server based on the number of processor cores that exist inside it. Most physical servers contain one or two CPUs. The number of cores that those CPUs contain could be vastly different. What you are required to license is the number of cores.
Hyperthreading doesn’t count. If you have one CPU with one core and it can do hyperthreading (logical cores), this counts as one core. If you have dual CPUs, each with 8 cores, now we’re talking about 16 cores in total. This is the number to license.
There is some confusing history about why these are called core packs instead of simply core licenses, but since you can never purchase a single core license (why would you, since CPU cores always come in even numbers), you will always be purchasing packs of licensing, core packs.
Except… (this is the moment when you realize why large companies employ full-time staff just to deal with licensing)… there are also some rules of minimum license purchase. You cannot cover a server with four core packs, because Microsoft says you can’t. Here are the rules of a minimum license purchase:
- Any physical server requires a minimum of 16 cores to be licensed.
- Even if your server has fewer than 16 cores, you must adhere to the prior rule and license for at least 16 cores.
- Every physical CPU requires at least 8 cores to be licensed, whether or not that CPU has 8 cores. But again, even if your server has only 1 CPU with 8 cores, you must still license the server for 16 cores based on the server-level minimum.
Wow, that is a lot of rules. Ultimately, many physical servers in smaller businesses will fall into the category of requiring a minimum of 16 cores to be licensed. That’s easy math, and in fact, when faced with purchasing Windows Server licensing, you will find that most places offer a 16-CPU core pack, which perfectly fits that need. When you grow your hardware to contain more than 16 CPU cores, you pull out the calculator and start purchasing additional core packs.
vCore licensing (virtual server licensing)
Most on-premise servers that I encounter continue to be licensed by physical CPU cores, but introduced to us in late 2022 was the idea of per-VM licensing, instead of physical server licensing. vCore licensing is what it sounds like, licensing for Windows Server based on the number of vCPU cores you are running, instead of physical CPU cores. There are also a couple of minimums to keep in mind with vCore licensing:
- Each VM must be licensed for at least 8 virtual cores. If you have a smaller VM that uses fewer than 8 cores, you’ll still have to pay for 8.
- Each customer requires a minimum of 16 virtual cores.
You may be tempted to start looking into vCores and running numbers to find out whether this new licensing model is cheaper for your environment, but there is one large caveat to keep in mind. Per-VM licensing was created for a specific purpose, primarily if you have a reason to run a small number of VMs on a large host, where physical licensing costs don’t make sense. This can sometimes be the case in cloud or hybrid-cloud scenarios, where you are using or renting host space from another entity. One requirement for vCore licensing that will be a determining factor for many businesses as to whether it can be used is that vCore licenses are only available to customers with active Software Assurance or subscription licenses.
At what point do I turn to Datacenter?
The Server 2025 Standard licensing strategy is scalable up to a certain point. Technically, you could forever increase the licensing that you purchase and the VMs that you run with that licensing, but wait a minute—didn’t we say that Server 2025 Datacenter permits you to run unlimited VMs? Indeed we did. While Server 2025 Datacenter costs a lot more than Server 2025 Standard, if you are facing a requirement to run many virtual machines, it may be more cost-effective to simply purchase Datacenter and not have to deal with all of the intricacies of Standard licensing.
The breaking point is usually around 12 VMs. If you run 12 or fewer VMs on a single server, you will likely save some money by running the numbers on Standard licensing, but it depends on what physical CPUs you have. If you need to run more than 12 VMs, it is most likely true that purchasing a single (16-core) Datacenter license will be your cheaper option.
Client Access Licenses (CALs)
So far, all we have talked about is Windows Server licensing, just for the server side. Microsoft also requires businesses to purchase and own CALs, to cover any user who needs to connect to resources on that server. This one is more straightforward to calculate—add up the numbers of users that you are going to point to resources on your server, and make sure you purchase that many (or more) CALs. Oftentimes, when you purchase Windows Server licensing, you will find options that combine server and CAL licensing, such as “Server 2025 16 core licenses + 25 CALs.”
If you have ever purchased CALs before, there is a decent chance you have been building a new server or implementing a Remote Desktop Services (RDS) environment. We will discuss RDS much more in an upcoming chapter on the topic, but RDS CALs are one type of CAL that you may find yourself purchasing, even on top of your normal Windows Server CALs. Out of the box, any Windows Server allows two user accounts to RDP into it at the same time, but no more. When implementing an RDS server, you often want many more people to be able to connect at the same time. The purchase and installation of RDS CALs is necessary for that to work properly.
Pay-as-you-go licensing
Whoa, what is this?? With the advent of Windows Server 2025, Microsoft has released a brand new way to pay for your Server 2025 instances, without needing to purchase cap-ex style perpetual licenses or core packs whatsoever. Enter pay-as-you-go licensing. Key to success with this new venture, the servers you are deploying must be tapped into Azure Arc (more on that later in this book). Assuming that you have Arc-enabled your servers, you can now license them through your Azure subscription, the cost as of this writing being $33.58 USD per CPU core, per month. As with most things in Azure, you only pay for what you need.