Microsoft has officially phased out the free version of Hyper V with Windows Server 2025. This change marks a major shift for IT pros and organizations that rely on cost-effective virtualization. What does this mean for your infrastructure and budget?
Microsoft’s Hyper-V FREE version was an alternative to paid hypervisor’s solutions in the past. It was not a game-changer, but still offering enterprise-class virtualization solutions at no cost, side by side with VMware ESXi FREE. The Microsoft solution suffered from different bugs but Microsoft kept improving with successive releases of Windows Server 2022 and 2025 versions.
However, with the release of Windows Server 2022 and 2025, the era of free Hyper-V has come to an end. This shift marks a significant change for IT professionals and organizations that have relied on Hyper-V for their virtualization needs. Already during the 2022-2023 period, many Hyper-V users started asking questions on what is going to happen to FREE Hyper-V Server. The answer is simple – Microsoft phased out this version and so the only option you now have is to install and deploy Windows Server 2025 core version, a version without GUI which you’ll activate the Hyper-V role on. This version of OS, as you can imagine, is not free. But before we’ll talk about it, let’s recap what has happened.
The Rise of Hyper-V Server 2019
Hyper-V Server 2019 was a free product that delivered enterprise-class virtualization for data centers and hybrid cloud environments. It provided the same Windows hypervisor technology found in the Hyper-V role on Windows Server 2019, making it a reliable and cost-effective solution for running virtual machines.
For Windows users not willing to go with alternative hypervisors like VMware, during that period, that was a great solution. You could manage your FREE Hyper-V with the tools you could install on your traditional, well-known Windows server and go on. The key features of Hyper-V Server 2019 included support for all popular operating systems, easy management through remote tools, and low hardware requirements.
The Benefits of Free Hyper-V
One of the most significant advantages of Hyper-V Server 2019 was its cost-effectiveness. While organizations still needed to license and pay for the licenses of the Windows OS running on virtual machines (VMs), they could use the Hyper-V Server itself without any additional licensing fees and also run Linux VMs or other Open Source operating systems.
This made it an ideal solution for small to medium-sized businesses and those looking to reduce their IT costs. Yes, Hyper-V Server 2019 offered flexibility in managing virtual machines, allowing users to run any number of VMs running open-source OSs like Linux without licensing concerns.
The Shift with Windows Server 2025
With the release of Windows Server 2025, Microsoft has introduced new pricing and licensing options that no longer include a free version of Hyper-V. While the activation of the Hyper-V role on your Windows Server 2025 is free, the server itself has to be licensed and you’ll have to pay license for running Windows VMs too.
The new licensing model includes two primary editions: Standard and Datacenter. The Standard Edition is ideal for physical or minimally virtualized environments, while the Datacenter Edition is designed for highly virtualized data centers and cloud environments.
Implications for IT Professionals
The end of free Hyper-V has significant implications for IT professionals and organizations. Those who have relied on Hyper-V for their virtualization needs will now need to consider the new pricing and licensing options, which may increase their operational costs. Additionally, the shift to a paid model may require organizations to re-evaluate their virtualization strategies and explore alternative solutions. The dream of Free Hyper-V is over. No more.
VMware/Broadcom had recently phased out FREE ESXi Hypervisor too. VMware users of that solution had no other options as to turn into other free alternatives such as Proxmox, XCP-NG and others.
Windows Server Core (with Hyper-V) role
This is the option that Windows admins have at the moment, if they want to keep using Hyper-V. It is a version of Windows Server OS without GUI where you simply activate the Hyper-V role.
Note: You can also install Hyper-V role within the WS 2025 with “Desktop Experience”. This has not changed.
We won’t go into much details, but you should follow Microsoft’s recommendations for installation and configuration, such as rename the host, configure networking etc….
The installation of Hyper-V role takes only one line of PowerShell code:
Install-WindowsFeature -Name Hyper-V -IncludeManagementTools -Restart
The parameter -IncludeManagementTools within the code means that the Server Core installation option of Windows Server 2025 installs also the Hyper-V Module for Windows PowerShell. And after restart, you’ll be able to manage your host locally via PowerShell
The remote management tools have not evolved much since 2019-2022. You have your Hyper-V manager console, and you also have a possibility to use PowerShell. For large enterprise there is still the option to use System Center Virtual Machine Manager (SCVMM), a paid solutions from Microsoft.
Other than that, there is Windows Admin Center (WAC), a web-based solution from Microsoft, but still not finished and many functions you’ll need and you use in the Hyper-V manager console are still not available in the WAC. But yes, eventually we’ll have it.
I think that datacenter virtualization solutions have never had so many different options to chose from. However fairly often, virtualization admins have to chose a paid solution from a software vendor because of compliance, data protection and security.
Let’s say that your organization has legal requirements to keep backups for 10 or 15 years, then you won’t be able to replace your virtualization solution (and your backup software solution) like this. You’ll be stuck with your existing solution unless you find a way to keep your existing infrastructure and start slow transition into a new, Open-Source virtualization solution that is supported by your backup vendor.
Looking Ahead
While the end of free Hyper-V is a notable change, it also presents an opportunity for organizations to explore new virtualization solutions and optimize their IT infrastructure. Microsoft’s continued focus on innovation and cloud services means that there are still plenty of options available for those looking to leverage virtualization technology.
We live in hybrid world where datacenter virtualization and cloud cohabitate together. There will not be end of private datacenters and there will not be end of public cloud offerings anytime soon. However, many organizations are surprised by the costs of cloud in general as their thoughts was that they were suppose to save money by externalizing their IT to the cloud. The opposite is true. It costs more so many organizations put stop to cloud spendings and starts to come back and run their VMs/containers, or workloads in general, within their own local datacenter. And Open Source is the key for less spendings and costs optimizations.
In conclusion, the end of free Hyper-V from Microsoft marks a significant shift in the virtualization landscape. While it may increase costs for some organizations, it also encourages IT professionals to explore new solutions and optimize their virtualization strategies. As the industry continues to evolve, staying informed and adaptable will be key to success.
