SQL Server IoT 2025 is Here: What It Is and Why It Matters for Embedded and OEM Systems

The new Windows Server IoT 2025 is now available! Microsoft has maintained its schedule of releasing a new Windows Server Operating System every three years, and they have stayed true to this commitment with the release of Windows Server IoT 2025. Interestingly, despite its name suggesting a future release, the product became available on November 1, 2024. While incorporating new capabilities within a tight timeframe can be challenging, Microsoft has impressed with this release. Let’s first explore the 2025 edition’s IoT-focused aspect. In the IoT channel, server products are designed and required to function as fixed-purpose appliances. Qualifying under these terms requires dedicating the server's purpose to your solution. These solutions can range from analyzing video streams in surveillance systems to supporting medical imaging technology or enabling next-generation gaming. Notably, the IoT version shares 100% functional parity with the standard commercial release, with the only distinction being the licensing terms. IoT editions encompass all features available in the commercial product, providing full functionality tailored to specific, fixed-use applications. In this channel, two licensing options are exclusively available for OEMs: CAL-Less Licensing: This option removes the need for Windows Server Client Access Licenses (CALs). It allows OEMs to deliver solutions where end-users remain compliant without the complexity of managing CALs, simplifying deployment and ongoing management. Virtual Machine as an Appliance (VMaaA): This licensing model enables OEMs to provide a fully virtualized solution, eliminating the need for dedicated hardware. The solution can be deployed directly onto the end-user’s infrastructure, offering greater flexibility and easier implementation. The IoT channel offers several editions tailored to different use cases. The most widely used Windows Server IoT 2025 Standard edition has additional options for Telco, Storage, and Datacenter environments. Windows Server IoT 2025 Edition License Terms Windows Server Standard Two virtual machines on a fully licensed server - all cores on the server are licensed Windows Server Datacenter Unlimited virtual machines on a fully licensed server - all cores on the server are licensed Windows Storage Server Dedicated file server appropriate for Network Attached Storage, Storage Area Network gateway, or storage solutions Windows Telecommunication Server For specialized telecommunications applications such as PBX, IP PBX, interactive voice response (IVR), or teleconferencing.   One key advantage of the IoT channel over other licensing options is its extended lifecycle. The new Server IoT 2025 product offers an impressive 10 years of support and availability. Therefore, if you integrate this product into your fixed-function appliance, you can continue purchasing and selling the 2025 edition until October 2034, with security updates provided throughout the entire period. Figure: Windows Server IoT Roadmap (December 2024) Top New Features of Windows Server IoT 2025 Edition Windows Server 2025 brings new features to enhance security, boost performance, and streamline operations in modern IT environments. These updates address the growing demands of hybrid and cloud-based infrastructures, AI workloads, and enterprise-level storage solutions. Microsoft has adjusted the price of the Windows Server IoT 2025 edition, citing added value and enhanced features as motivation for the price increase. Key enhancements focus on advanced security measures, greater efficiency for virtualized and AI-driven applications, and tools that simplify management and troubleshooting. AI and GPU Capabilities AI-Ready Capabilities: Supports multi-instance GPU pooling and partitioning, enabling complex AI models and GPU-intensive applications. GPU Partitioning and Pooling: Enables sharing GPU resources across virtual machines (VMs) to support AI workloads. Performance and Resource Optimization NVMe Storage Performance: On identical systems, it delivers up to 70% more storage IOPS performance than Windows Server 2022. Block Cloning Support: With the ReFS file system format, block cloning offers significant performance improvements during file copying. Persistent Memory and HCI Performance Boosts: Delivers performance enhancements for virtualized SQL Server instances using persistent memory and improves Hyper-Converged Infrastructure (HCI) configurations and includes updates to Windows Admin Center. Accelerated Networking (AccelNet): Simplifies single root I/O virtualization (SR-IOV) management for VMs hosted on Windows Server 2025 clusters, reducing latency, jitter, and CPU usage. ReFS Native Deduplication and Compression: Introduces native deduplication and compression, enhancing storage efficiency, particularly for virtual workloads. Security and Threat Protection Enhanced Security for Hybrid Environments: Offers advanced threat defense and improved secure management features. Credential Guard: Enabled by default in Windows Server 2025 on compatible devices, it blocks credential theft attacks by protecting NTLM password hashes, Kerberos Ticket Granting Tickets (TGTs), and app-stored domain credentials. Virtualization-based Security (VBS) Enclaves: Help applications protect secrets by reducing the need to trust administrators and hardening against malicious attacks. Windows Local Administrator Password Solution (LAPS): Automatically generates unique passwords for each computer's local administrator account, stores them securely in Active Directory, and updates them regularly to reduce the risk of attackers exploiting compromised or predictable passwords. File Services/Server Message Block (SMB) Hardening: Includes SMB over QUIC for secure Internet-based file share access, hardened firewall defaults, brute force attack prevention, and protections against man-in-the-middle, relay, and spoofing attacks. Patch and Update Management Arc-enabled Hotpatching: Allows servers to apply patches without requiring a reboot, significantly improving high availability, and reducing maintenance downtime. Active Directory and Service Management New Active Directory (AD) Functionalities and Capabilities: Includes features like AD object repair, optional 32k database page size, and enhanced security for confidential attributes and default machine account passwords. Delegate Managed Service Accounts (dMSA): Automatically manages passwords for service accounts through Active Directory, eliminating manual password updates. Monitoring and Troubleshooting DTrace: Introduces DTrace as a native tool, allowing real-time monitoring and troubleshooting of system performance. Windows Server IoT 2025 Hyper-V: The Ultimate Solution for Virtualization Windows Server IoT 2025 is equipped with Hyper-V, supporting for up to 2,048 virtual processors and 240 terabytes of memory, positioning it as an essential solution for modern IoT infrastructures. This robust feature offers powerful virtualization capabilities, supporting the most demanding and scalable workloads. Recently, VMware transitioned from its perpetual licensing model to an entirely subscription-based licensing approach, posing challenges for OEMs relying on perpetual licensing. Many of these OEMs already purchased Windows Server licenses to support virtual machines running atop VMware. Integrating Hyper-V into Windows Server IoT 2025 addresses this gap by allowing OEMs to use Windows Server as their bare-metal hypervisor at no additional licensing cost when they purchase a Windows Server license, thus eliminating licensing hurdles while delivering an efficient, cost-effective virtualization solution. By leveraging Hyper-V, organizations gain flexibility, scalability, and cost efficiency, streamlining IoT deployments without dependency on additional virtualization licensing models. Download our Hyper-V Virtualization for OEM Appliances Brief for more information. Note: Licensing Options During Installation One additional feature worth noting is the installation screen experience. During the installation process, users are prompted to either enter a product key or select the "pay as you go" option for licensing. The "Pay as you go" option allows monthly payments via Azure subscription, though it is unavailable for the IoT channel. This option appears because the IoT and standard versions are identical in installation. However, for the IoT channel version specifically, users must enter a product key instead, as the subscription-based "Pay as you go" model is excluded from this licensing pathway. Contact Us If you have any questions about Windows IoT Server 2025 or other IoT products, contact us at windowsiot@arrow.com. Our experts will respond within one business day.

Microsoft Client Access Licenses (CALs) provide users or devices the authorization to access Microsoft server software. They function as permits granting access to certain services on a Windows Server. There are two types of CALs: User CALs for individual users and Device CALs for specific devices like computers and smartphones.

Purchasing the right Microsoft IoT operating system product can be daunting for an embedded or edge solution provider. With confusing licensing options, numerous SKUs to choose from, and a list of authorized distributors to navigate, it takes time to determine which provider is best for your needs. Choosing the right distributor is crucial for building secure and connected Windows IoT solutions.