Microsoft has announced a significant change to its Windows Server 2025 security update policy. Starting July 1, 2025, businesses running Windows Server 2025 Standard or Datacenter editions on their own hardware will need to pay $1.50 per CPU core each month for hotpatch updates. This new fee applies only to on-premises and non-Azure cloud servers, while Azure-based deployments will continue receiving hotpatches for free.
This move has sparked discussions among IT professionals about whether the convenience of reboot-free security updates justifies the additional cost. In this article, we’ll break down what hotpatching is, how it benefits businesses, and whether the new fee is worth it for your organization.
What Is Hotpatching?
Hotpatching is a feature that allows businesses to install security updates without restarting their servers. Traditionally, applying Windows updates requires a reboot, which can lead to downtime, service interruptions, and scheduling challenges for IT teams.
With hotpatching:
- No reboots are needed for most security updates.
- Only major cumulative updates (about four times a year) still require a restart.
- IT teams can reduce maintenance windows and avoid late-night or weekend updates.
Until now, this feature was free for Azure users, but Microsoft is now extending it to on-premises and hybrid environments, for a fee.
Why Is Microsoft Charging for Hotpatching?
Microsoft justifies the new $1.50 per CPU core monthly fee by emphasizing the time and operational savings it provides. According to the company:
- Hotpatching can reduce required reboots from 12 per year to just four.
- Businesses save on downtime costs and minimize disruptions to critical services.
- IT teams can focus on strategic tasks rather than constant update management.
However, some IT professionals question whether the cost is justified, especially for organizations with large server fleets. For example, a business running 100 servers with 32 cores each would face an additional $57,600 per year in hotpatch fees.
Who Will Be Affected by the New Fee?
The $1.50 per core charge applies to:
✅ Windows Server 2025 Standard & Datacenter (on-premises or non-Azure cloud)
✅ Servers connected to Azure Arc (Microsoft’s hybrid management tool)
The fee does not apply to:
❌ Azure-based servers (hotpatching remains free)
❌ Older Windows Server versions (2022, 2019, etc.)
Key Deadlines:
- June 30, 2025: Last day to opt out of the paid plan if currently enrolled in the free preview.
- July 1, 2025: Paid hotpatching begins for eligible servers.
Is Hotpatching Worth the Cost? Pros and Cons
Pros:
✔ Minimized Downtime – Fewer reboots mean higher server availability.
✔ Reduced IT Overhead – Less need for after-hours maintenance.
✔ Better User Experience – Fewer disruptions for employees and customers.
Cons:
❌ Added Expense – Can be costly for businesses with many CPU cores.
❌ Azure Arc Requirement – Must use Microsoft’s hybrid management tool.
❌ Not for All Servers – Only applies to Windows Server 2025.
Who Should Pay for It?
- Enterprises with mission-critical servers that can’t afford downtime.
- Businesses already using Azure Arc for hybrid cloud management.
- Companies with compliance requirements that demand up-to-date security patches.
Who Should Skip It?
- Small businesses with fewer servers and flexible maintenance windows.
- Organizations with tight IT budgets where the cost outweighs the benefits.
- Companies using older Windows Server versions (not eligible for hotpatching).
How to Avoid the Hotpatch Fee
If you decide the $1.50 per core fee isn’t worth it, you can:
- Opt out before June 30, 2025 (if currently in the free preview).
- Stick with traditional updates (requires more reboots).
- Migrate eligible workloads to Azure (hotpatching remains free in the cloud).
Final Thoughts: Is Microsoft’s Hotpatch Fee Justified?
Microsoft’s new hotpatch subscription model reflects a growing trend of monetizing enterprise features that were once free. While the convenience of reboot-free updates is valuable, businesses must weigh the cost versus benefits based on their server infrastructure and budget.
For large enterprises, the reduced downtime may justify the expense. However, smaller businesses might prefer sticking with traditional updates to avoid extra costs.