Introduction

Microsoft is changing the rules on Windows Server updates. Starting July 1, 2025, a new $1.50 per CPU core monthly fee will be introduced for a service called “hotpatching.” If you’re a system administrator, IT manager, or run infrastructure that can’t afford downtime—this matters. A lot.

In this guide, we’ll break down what hotpatching is, why Microsoft is charging for it, how it affects your update strategy, and what IT pros are saying. We’ll also walk you through whether it’s worth paying for—and how to plan ahead.

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What Is Hotpatching?

Hotpatching is a way to install security updates without rebooting the system. It works by injecting patches directly into system memory. This means you get important security fixes without shutting down apps, services, or entire virtual machines.

It’s especially useful for servers running critical workloads—think databases, applications, or services that require maximum uptime.

For a while, hotpatching was free in preview mode. But now, Microsoft is shifting it into a paid subscription model for Windows Server 2025 Standard and Datacenter editions.

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$1.50 Per Core? I Didn’t Know Patching Came with a Cover Charge

Let’s talk numbers.

• Fee: $1.50 per CPU core, per month.
• Who it applies to: Any on-prem Windows Server 2025 instance enrolled in Azure Arc.
• When: Starts July 1, 2025.
• Billing begins: If you’re in the preview program and don’t opt out by June 30, billing starts automatically.

On the surface, $1.50 per core might sound manageable. But for a server with 32 cores, that’s $48/month—or $576/year. Multiply that across a cluster or multiple hosts, and the costs add up fast.

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How the Hotpatch Cycle Works

The update process under this model follows a three-month rhythm:

• Month 1: You apply a baseline update. This one does require a reboot.
• Months 2 and 3: You receive hotpatches—no reboot needed.
• Then the cycle repeats.

Effectively, you’re reducing planned reboots to four times a year. This is a big win for uptime, especially in production environments.

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Pros and Cons for IT Teams

Pros:

• Fewer restarts = more uptime.
• Predictable update cycles.
• Potentially fewer disruptions during business hours.
• Better for high-availability environments.

Cons:

• New recurring cost, especially in large environments.
• Only available if you integrate with Azure Arc.
• Not every workload needs zero-downtime updates.

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Reactions from the Sysadmin Community

This news has already sparked debate in IT circles—especially on Reddit.

Here are a few common questions and themes popping up:

• Is it worth it?
  Some admins say yes—especially for public-facing services or regulated environments where downtime is a no-go. Others argue that traditional patch-and-reboot methods work just fine if managed properly.
• Why isn’t this included in the OS license?
  Several users voiced frustration that hotpatching is now being “unbundled” and monetized separately. They’re already paying for licenses, CALs, Azure, etc.
• How will this affect licensing audits?
  Others worry about potential billing surprises. Since hotpatching is tied to core count, tracking and budgeting will be important—especially across hybrid environments.
• Do I have to use Azure Arc?
  Yes. Hotpatching is only available through Azure Arc-connected servers. This locks you into Azure if you want to use the feature. Some see this as a smart strategy by Microsoft. Others call it aggressive.
• Will Microsoft eventually make this the default update path?
  Some sysadmins are skeptical. They wonder if traditional patching will become second-class—or if more features will be put behind a paywall.

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Who Should Consider Paying for Hotpatching?

This service won’t be right for everyone.

You should probably pay for hotpatching if:

• You manage high-availability or critical systems.
• Your workloads can’t afford unexpected downtime.
• You’re operating in a regulated industry (finance, healthcare, etc.).
• You already use Azure Arc and want smoother update cycles.

You can probably skip it if:

• You’re running lab, test, or dev environments.
• You reboot servers on a regular schedule already.
• You’re tightly managing costs and don’t need 24/7 uptime.

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How to Prepare

If you’re on Windows Server 2025 or planning to upgrade, here’s how to plan:

1. Audit your server core counts.
   Figure out what your monthly spend would look like. Remember, this is per core—not per server.
2. Evaluate your need for uptime.
   If a 15-minute reboot window doesn’t hurt your business, the hotpatching fee might not be justifiable.
3. Decide if you’ll integrate with Azure Arc.
   If not, you won’t be able to use hotpatching at all.
4. Review licensing terms carefully.
   Automatic billing starts July 1 unless you opt out. Don’t assume preview = free forever.
5. Talk to your team.
   Get input from stakeholders, especially in Ops and Security, on whether this fits your risk and uptime tolerance.

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Final Thoughts

This change from Microsoft isn’t just about $1.50 per core. It reflects a broader shift: updates are becoming services. And Microsoft is betting that businesses will pay for convenience, uptime, and predictability.

Whether this is a smart investment depends on your use case. For some, it’s an easy yes. For others, it’s just another nickel-and-dime moment in the growing list of Microsoft add-ons.

If you want your infrastructure to stay secure and online, you now have to factor this into your budget and planning. Don’t get caught off guard.

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Sources

• Forbes: “Microsoft Confirms $1.50 Windows Security Update Fee Starts July 1”
• Microsoft Windows Server Blog (April 2025)
• Reddit /r/sysadmin discussion on Microsoft Hotpatching Announcement

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