Arrow Intelligent Solutions blog

The new SQL Server IoT 2025 is now available! If you build devices, appliances, or embedded systems that ship with a database inside, SQL Server IoT 2025 is worth a serious look. It brings the SQL Server 2025 engine into long-life, fixed-function products. You get the full engine, the same AI features, the same JSON and vector capabilities, and the same security improvements. The only difference is that it is packaged and licensed for OEM and embedded scenarios.

In my experience supporting embedded customers, the pattern is consistent. More data at the edge, tight security requirements, long product lifecycles, and pressure to support AI without adding cloud dependencies. SQL Server IoT 2025 helps you handle those problems without changing how you design your systems. You can use the same T-SQL, drivers, tools, containers, and development workflow.

AI where your device runs

The biggest change in SQL Server IoT 2025 is the built-in AI stack. The database now supports a native vector type, semantic search, hybrid search, and local or remote model execution. You can generate embeddings inside the engine, and you can run AI agents through a secure REST endpoint that SQL Server manages.

Nothing in this requires a cloud connection unless you choose to use one. You can keep models local by using Ollama or ONNX Runtime. You can also call cloud models through Azure OpenAI or OpenAI.

For embedded systems, this means you can build features that previously required a cloud round-trip. Examples include local anomaly detection, troubleshooting assistance, natural language search of manuals or logs, and smarter automation. If you already store your device data in SQL Server, the new vector features let you use that data immediately.

Security that matches modern requirements

The platform is secure out of the box. SQL Server IoT 2025 carries forward the security updates from SQL Server 2025. That includes TLS 1.3, TDS 8.0, PBKDF hashing, managed identities, and stricter defaults. This helps you ship hardware that is ready for audit and compliance checks. For teams in healthcare, manufacturing, or other controlled industries, this reduces significant design risk.

Performance improvements that help small systems

Most devices in the field run on constrained compute, so predictable behavior underload becomes more important than raw horsepower. SQL Server IoT 2025 benefits from improvements like optimized locking, Lock After Qualification, tempdb governance, faster failover, and reduced contention during heavy workloads.

Your device can run more predictable workloads with fewer stalls. It starts faster, handles concurrency better, and gives you cleaner behavior when something on the system misbehaves.

Better ways to move data out of the device

You also get Change Event Streaming, which pushes changes directly to Azure Event Hubs. The engine streams committed transactions without extra system tables. This helps when your design needs low-latency reporting or coordination with services outside the device.

If you use Microsoft Fabric, SQL Server IoT 2025 supports database mirroring directly into OneLake. That gives you a simple path to analytics or long-term storage without writing ETL code.

Developer workflow stays simple

Stability in the toolchain is just as important as stability in the engine. SQL Server IoT 2025 uses the same drivers, SSMS, VS Code extension, containers, and deployment workflow. You also get the new JSON type, JSON indexing, RegEx functions, Base64 utilities, and improved T-SQL functions that SQL Server 2025 introduces.

When an upgrade is worth it

If you are trying to decide whether this upgrade is worth it, these are the points that usually guide the decision:

• If your device is running SQL Server 2014 or 2016, you are past or near the end of mainstream support and the extended support runway is shrinking fast. SQL Server IoT 2025 offers a long-life option with a modern engine, stronger security, and a cleaner feature set for long-term maintenance. You also get improvements like accelerated recovery, better indexing behavior, and up-to-date drivers.
• If your product roadmap includes AI features or if customers are asking for analytics without sending data off the device, SQL Server IoT 2025 gives you a built-in way to handle that.
• If your company is standardizing on Fabric or Azure Arc, IoT 2025 fits neatly into that architecture.
• • If your design team is trying to reduce custom code around queues, logs, or sync processes, IoT 2025 reduces that work.

SQL Server IoT 2025 Options

FAQs

Is SQL Server IoT 2025 different from SQL Server 2025?
The engine is the same. SQL Server IoT 2025 is licensed for embedded and OEM scenarios and includes the support lifecycle those products need. All features come from SQL Server 2025, including AI, vector search, JSON, CES, and Fabric mirroring.

Are there pricing or licensing changes?
No. SQL Server IoT 2025 keeps the same pricing and licensing structure.

Does SQL Server IoT 2025 support both Windows and Linux?
Yes. You can run the IoT edition on either platform, with full feature parity. The Linux engine carries the same improvements as SQL Server 2025, including TLS 1.3, custom password policies, and tmpfs for container workloads.

Can I use SQL Server IoT 2025 offline?
Yes. The product does not require a cloud connection. You can run local models, local inference, local vector search, and local analytics entirely inside the device.

What are the OS and upgrade requirements?
Windows Server 2019 or newer, current Linux distributions, and upgrades from SQL Server 2014 and above. Database compatibility levels range from 100 to 170.

Does SQL Server IoT 2025 support Fabric mirroring?
Yes. You can mirror operational databases to Fabric without writing ETL. Data flows into OneLake and stays updated in near real time. This keeps the device workload light while letting you centralize analytics.

Can SQL Server IoT 2025 run in containers?
Yes. It works in the same container images as SQL Server 2025. You also get the Linux improvements such as TLS 1.3 support and tmpfs for tempdb-heavy workloads.

Does Arrow have more information on SQL Server IoT 2025?
Yes. Please learn more about SQL Server IoT 2025 here.

I generally start my day with a steady flow of Microsoft IoT licensing questions. The basic ones roll in asking things like "Do I qualify for IoT?" and "How is Windows 11 IoT licensed?" Eventually, a Windows Server licensing question hits my desk, and that's when I dread the discussion about Client Access Licenses.

The easy part of server licensing is licensing the Windows Server operating system itself. You license all the processor cores with a minimum of 16 cores. However, the challenging part comes when I have to ask OEM customers: "How many clients do you need?"

The customer inevitably responds with something like: "Clients? I'm not sure. Can you explain what requires a Client Access License?"

Microsoft's New “CAL-Less” Solution

For years, I've explained what a Windows Server Client Access License (CAL) is and how it's licensed. However, Microsoft now offers something that eliminates the need for these complex explanations. They now provide a Windows Server IoT "CAL-Less" license.

This new CAL-Less server license option removes the licensing terms for Client Access Licenses, meaning the server doesn't require Windows Server CALs. All those questions about users versus devices and what needs a CAL have fallen by the wayside. Not only does this make my life easier, but it also dramatically simplifies the OEM customers' experience, keeping them completely compliant with unlimited users and devices.

The Benefits Are Clear

The CAL-Less option simplifies the lives of OEM customers by reducing the number of part numbers to just the Windows Server IoT OS licenses. No more questions like:

• How many users or devices will connect to your server?
• Does the end-user already own Windows Server CALs?
• How many CALs should I bundle with our solution?
• What requires a CAL?
• What's the definition of a User versus a Device?

What's the Trade-off?

For Microsoft to offer this excellent licensing option with no CALs required, they increased the price of the base Windows Server IoT license. You'll pay roughly the same price as a server bundled with 8 CALs, but you get unlimited users. For many OEM customers, this is a dream come true. They're happy to pay the additional fee to gain the advantages of guaranteed compliance and simplified solutions.

How Does the Server Know It's CAL-Less?

Traditional Windows Server CALs are licensed by purchasing User or Device CALs and delivered via a COA card (a piece of paper with a COA license attached). There's no product key to enter or software activation required. It operates on what we call a 100% honor system. The OEM passes the COA card with CAL licenses to the end customer, who must maintain the COA card license in case of an audit.

The CAL-less server includes product licensing terms that remove the CAL requirement entirely. CAL licenses do not require a COA card. The Windows IoT Server COA license will state "CAL-Less" on the COA license, indicating that no CALs are required. See an example here:

How to Order CAL-Less Server Licenses

To order the CAL-less license for Windows IoT Server 2019, 2022, or 2025, use the CAL-less license options below for your total number of physical cores. For additional cores, use the regular 4-Core add-on to reach your total processor core count.

Windows Server IoT Standard 2025 CAL-Less Options

Windows Server IoT Standard 2022 CAL-Less Option

Windows Server IoT Standard 2019 CAL-Less Options

Important Note About Remote Desktop CALs

This CAL-less server option does NOT include RDS Client Access Licenses. If your solution requires Remote Desktop Services CALs, you must still purchase them separately, as the CAL-less option doesn't cover RDS CALs.

In Summary

Simplify your solution by reducing the number of required part numbers, and keep your solution 100% compliant by allowing unlimited users and devices. For many OEMs, this is a fantastic offering that's only available in the OEM IoT channel. Use it to your advantage with your solution today!

If you need assistance or have questions about Microsoft Windows IoT, please get in touch with our team at: windowsIoT@arrow.com. We'll get back to you within 24 hours.

My biggest competitor to Windows IoT isn’t Linux or Android. It’s Windows Pro.

That might sound surprising—but in many cases, customers choose Windows Pro for their fixed-purpose devices simply because of misinformation. Sometimes, they've read something inaccurate online about Windows IoT. Other times, they just couldn’t find enough information at all. And so, they default to what they know: Windows Pro.
That’s precisely why I’m writing this blog. It’s time to clear up the confusion.

Windows IoT is purpose-built for you if you're building a fixed-purpose device or appliance. It offers the control, flexibility, and long-term support Pro simply can’t. With Windows 10 Pro reaching the end of support in October 2025, now is the right time to make the move to Windows IoT and keep running Windows 10 securely and reliably for years.

At Arrow, we’ve seen a sharp uptick in questions about Windows 10 lately. That spike is likely due to the upcoming end-of-support deadline. And what we’re finding is that for many customers, this is the first time they've even heard of Windows 10 IoT.

Let me touch on a few things I often hear from customers when it comes to Windows IoT:

• “I was told that IoT indicates that the device must be connected to the internet.”
• “Windows IoT can only be used for industrial controllers that run a single application.”
• “IoT stands for connected devices, and I can only use it if my devices are all connected.”
• “IoT doesn’t get any updates and thus many newer software applications won’t work with it.”
• “My software application is only certified on Windows 10 Pro, so I can’t use IoT.”
• “I already paid for Win Pro when I purchased the device, and I don’t want to buy Windows again.”

In addition to those common misconceptions, there’s much confusion around Windows 10 End of Support and its meaning.

Here are a few real questions and comments we’ve received from customers:

• “Once Support ends, will the computer stop working?”
• “When Support ends, can’t I just maintain security by keeping a 3rd party antivirus tool updated?”
• “For the Win 10 IoT LTSC product w/10 years support, do I have to pay for the extended support?”
• “What is ESU and how can I get it for my Windows 10 devices?”
• “How difficult is it to switch from Windows Pro to Windows IoT Enterprise LTSC?”

Let’s examine the most common misconceptions and explain why Windows IoT Enterprise is the right choice for fixed-purpose devices.

What Windows IoT Is—and Isn’t

First, let’s define Windows IoT. It’s a family of operating systems specifically intended for OEMs that manufacture and build fixed-purpose appliances. You might think “IoT” means everything has to be connected to the Internet—but that’s not true. Windows IoT is the evolution of Windows Embedded, which has been serving this market for over 30 years. It’s designed for use across any industry vertical—not just industrial controllers. You can run a single application or multiple applications on a device, whether or not it connects to the Internet. Many OEMs build completely offline devices using Windows IoT. The client IoT editions even support deferred activation, allowing systems to run without ever connecting to the Internet.

What About the Windows 10 IoT LTSC Edition?

Windows 10 IoT Enterprise LTSC Edition is a long-term support version of Windows designed for fixed-purpose devices. It offers enterprise features, enhanced control, and 10 years of security updates without disruptive feature changes.

Here’s where things often get confusing:

• Windows IoT Enterprise LTSC editions only receive Quality Updates—mainly security patches or critical hotfixes.
• They do not receive Feature Updates, which can sometimes disrupt system stability or application compatibility.

Your appliance can remain secure without changing the environment you certified and tested. That’s a huge win for long-term reliability.

Also, most applications that run on Windows 10 Pro will run just fine on Windows 10 IoT Enterprise LTSC, since it’s built on Windows 10 Enterprise—an upgrade from Pro. You’ll also get added control and manageability features exclusive to Enterprise editions.

Windows 10 IoT Enterprise LTSC 2021 is the final Windows 10 release and will be supported through January 2032.

Windows 10 Lifecycle Overview

What about Cost?

Customers often ask about cost, especially if they feel they’ve already paid for Windows 10 Pro bundled with a device. Here’s the reality: when you buy from OEMs like Dell, Lenovo, or HP, the Pro license is a part of the bundle—and the OEM likely paid very little for it.

That minimal cost shouldn’t prevent you from gaining all the benefits of IoT LTSC. IoT licensing is priced based on processor class, and the investment is well worth the long-term support, enhanced reliability, and reduced maintenance.

What is the Migration Process from Windows 10 Pro to Windows 10 IoT?

The migration process is simple, but there’s a caveat: a clean install is required if you're currently on Windows 10 Pro 22H2, because IoT Enterprise LTSC 2021 is based on the build 21H2.

That said, we at Arrow can help. We offer migration support and engineering services to make your transition smooth and successful.

What Happens When Windows 10 Pro Support Ends?

Windows 10 Pro support ends on October 14, 2025. For the first time, Microsoft is offering Extended Security Updates (ESU) for Home and Pro editions, previously available only to IoT OEMs with signed agreements.

Here’s how ESU pricing breaks down:

• Windows 10 Home:
  • ~$30 for 1 year (may not be extended further)
• Windows 10 Pro:
  • Year 1: $61 per device
  • Year 2: $122 per device
  • Year 3: $244 per device

So yes, you can keep running Pro beyond 2025—but it’ll cost you more each year.

Windows IoT: Built-In Long-Term Support

Windows 10 IoT Enterprise LTSB/LTSC editions already come with 10 years of support.

However:

• LTSB 2015 (ends October 2025) will not receive ESU
• For LTSC 2019 and LTSC 2021, ESU plans are still to be announced

Your Path Forward

If you're an OEM currently using Windows 10 Pro for fixed-purpose appliances, now is the time to transition to Windows IoT. You can:

• Move to Windows 10 IoT Enterprise LTSC 2021 and receive support until January 2032
• Begin testing Windows 11 IoT Enterprise LTSC 2024, which extends support to October 2034

Both options keep your appliances secure, stable, and supported for years.

If you have questions or need help navigating your transition, reach out to us—we’re here to help. For questions on ESU or IoT, contact us at windowsIoT@arrow.com.