Microsoft is introducing a consistent pricing model for Extended Security Updates (ESUs) across Azure, on-premises environments, and other public clouds. This change directly impacts organizations running SQL Server 2016 and Windows Server 2016 as they approach end of support.
SQL Server 2016 has served organizations reliably for nearly a decade, but the clock is officially ticking. With the end of extended support on July 14, 2026, organizations need to act to reduce risk, maintain compliance, and modernize their data platforms.
After this date:
- No security updates
- No bug fixes
- Increased compliance and security risk
Microsoft offers Extended Security Updates (ESUs) for up to three years, but these are a temporary safety net, not a long-term strategy. Find out more: Cost of Staying on SQL Server 2016 vs Modernizing
| Version | Start Date | End Date |
|---|---|---|
| Extended Security Updates Year 1 | Jul 15, 2026 | Jul 13, 2027 |
| Extended Security Updates Year 2 | Jul 14, 2027 | Jul 18, 2028 |
| Extended Security Updates Year 3 | Jul 19, 2028 | Jul 17, 2029 |
What Is Changing?
Historically, ESUs in Azure were treated differently than ESUs purchased for on-premises or other cloud environments. That is no longer the case.
New Reality:
- ESUs in Azure will now be charged at the same rate as non-Azure deployments
- Pricing aligns across Azure, on-premises, and other clouds
- This introduces pricing consistency and transparency across all purchasing channels
- This change does not impact existing ESUs for SQL Server 2014 or Windows Server 2012
ESU Pricing Overview
Microsoft is standardizing pricing at:
- 100% of the 2025 license cost per year
- Applies across all three ESU years
- Same pricing regardless of deployment method
Sample Pricing
| Product | Cost |
|---|---|
| SQL Server Enterprise (2-core pack) | $12,854/year |
| SQL Server Standard (2-core pack) | $3,353/year |
| Windows Server Datacenter (16-core) | $479.66/month |
| Windows Server Standard (16-core) | $83.30/month |
Billing begins: January 2027 for Windows Server 2016 and July 15th, 2026 for SQL Server 2016:
Discounts and Cost Optimization
Microsoft is enabling significant discounting options:
- Up to 55% discount for ESUs in Azure
- Up to 40% discount via Azure Arc
- Up to 15% via volume licensing
But the real opportunity is modernizing your SQL Server 2016, which I previously discussed on how to Modernize SQL Server 2016 with Azure Arc Dashboards, Modernize and Secure Your SQL Server 2016 and walked through some Migration Guidelines. But the bottom line is that staying on SQL Server 2016 without a plan exposes you to real operational and security risks.
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