Introduction

Recent news has sparked widespread confusion and concern regarding a purported $1.50 monthly charge for Windows security updates. However, the reality is more nuanced and specifically targets enterprise environments, particularly Windows Server 2025 and its new hotpatching feature. This article clarifies the facts, offers background on hotpatching technology, and discusses its implications for IT administrators.

What is Hotpatching?

Hotpatching is an advanced software update technique designed to apply critical security and quality patches directly to a running system without requiring a reboot. Traditionally, Windows Server updates necessitate scheduled downtime to reboot servers, which creates operational disruptions and security vulnerability windows between patch release and installation.

Hotpatching dramatically reduces this downtime by injecting updates in memory, enabling near-continuous server availability. While four full reboots per year (“baseline maintenance”) remain necessary to apply all updates, hotpatching cuts the otherwise frequent reboot cycles typically required—sometimes from monthly restarts to quarterly ones.

Background and Deployment Expansion

Initially exclusive to Microsoft Azure Edition of Windows Server, hotpatching has been a cloud-first feature since its inception. The upcoming Windows Server 2025 release extends hotpatching availability beyond Azure, allowing deployment on-premises and across hybrid or multi-cloud infrastructures.

However, this expansion requires servers to connect through Azure Arc, Microsoft’s hybrid and multi-cloud resource management platform. Azure Arc integration centralizes server monitoring and management and is mandatory for enterprises to use hotpatching on non-Azure environments.

The $1.50 Hotpatching Fee Explained

Microsoft announced that starting July 1, 2025, the hotpatching feature for Windows Server 2025 will transition from a free preview to a paid subscription model. The cost is set at $1.50 per CPU core per month for each eligible server running Windows Server 2025 Standard or Datacenter editions, provided the server is connected through Azure Arc.

This subscription fee applies only to the hotpatching capability—not to routine Windows Update delivery or standard security patches—for organizations using on-premises or third-party cloud infrastructure. The Datacenter: Azure Edition of Windows Server, used exclusively in the Azure cloud, continues to include hotpatching at no additional charge.

Administrators currently using hotpatching preview need to opt out before June 30, 2025, to avoid automatic enrollment and billing.

Implications and Impact

For Enterprise IT

  • Reduced Downtime: Hotpatching minimizes patch-related reboots, enabling higher uptime and operational continuity critical for industries like finance, healthcare, and e-commerce.
  • Cost Considerations: At $1.50 per core monthly, larger organizations with many multi-core servers could face significant subscription expenses. Budgeting and procurement must weigh these costs against the benefits of reduced downtime.
  • Cloud Integration Requirement: Mandatory Azure Arc connectivity may necessitate architectural and policy changes and deeper cloud integration strategies.
  • Security Enhancement: Shrinking the window of vulnerability between patch release and application strengthens security posture.

For Windows 10 and Windows 11 Users

There is no new subscription fee for security updates on Windows 10 or Windows 11 desktop and laptop versions. Microsoft states that free security updates for these consumer and business desktop editions will continue with no change.

Technical Details

  • Hotpatching Process: Updates are dynamically injected in-memory within running processes, eliminating the need for immediate restarts.
  • Quarterly Baseline Reboots: To maintain system stability and security, four scheduled full reboots per year remain necessary.
  • Azure Arc Dependency: Non-Azure servers must enroll in Azure Arc for hotpatching eligibility.
  • Subscription Model: $1.50 per physical or virtual CPU core per month billed monthly, regardless of patch frequency.

Conclusion

Microsoft’s $1.50 hotpatching fee applies exclusively to Windows Server 2025 hotpatching in on-premises or hybrid environments connected via Azure Arc, not to Windows 11 or traditional Windows Update services. This strategic shift aligns with Microsoft’s broader move towards subscription-based services and hybrid-cloud management, offering enterprise customers enhanced uptime and security at a manageable cost, especially when weighed against the high expense of downtime.

For general consumers and most business desktop users, security updates remain free and unaffected.

Reference Links

This article provides clarity on current Microsoft update policies and is intended to aid IT decision-making and general understanding.