Windows Cloud Server 2025: Step-by-Step Installation And New Features Explained

Indeed, businesses and IT professionals gear up for the next wave of server advancements; windows cloud server 2025 is all set to reinvent performance, security, and cloud integration. With enhanced AI capabilities, improved security protocols, and greater efficiency for hybrid cloud environments, Microsoft's current server operating system is designed to be tailored to the requirements of modern enterprises. 

Whether you are a pro system administrator or setting up a windows cloud server for the first time, understanding the installation process and new features is vital to upgrading its potential. In this blog, we are going to discuss the step-by-step installation guide and best practices. This will explain the new features and enhancements that make Windows Cloud Server 2025 a game-changer in server infrastructure. 

What is Windows Cloud Server 2025?

Windows Cloud Hosting is commonly known as an operating system created by Microsoft for servers. It is designed to manage networked systems, host databases, and run enterprise applications. Unlike the Windows OS for personal computers, the Windows cloud server is optimized for tasks that require high levels of reliability, scalability, and security. It is widely used in business environments to support the infrastructure for connected applications, networks, and web services

In January 2024, the company publicly announced the first windows cloud server 2025 build for admins enrolled in the Windows Insider program. This new version introduced hot patching, next-gen Active Directory, and SMB over QUIC alternative ports. Windows Cloud Server is available through two primary release channels: the Long-Term Servicing Channel with Windows Cloud Server 2025 and the Annual Channel linked to Windows Cloud Server version 23H2.

Explore the new features of this latest windows cloud server

Initially, hot patching was restricted to Windows Cloud Server 2022 Datacenter: Azure Edition (Core) VM, enabling server administrators to apply updates without rebooting the server or disrupting ongoing processes. Hot patching is now available for Windows Cloud Server 2025 Standard and Datacenter editions, applicable to virtual machines (VMs) and various cloud environments. The capability necessitates an Azure Arc subscription.

• Next-Generation Active Directory:Server 2025 accommodates 32k page-sized Active Directory databases, whereas Windows Cloud Server 2000 only manages an 8k page database. Next-generation AD also provides enhanced AD replication. Furthermore, Server 2025 features a new functional-level forest and domain. There's limited documentation available, but Microsoft mentioned that to utilize the 32k page Active Directory database feature, all domain controllers in a forest must have a database that can support 32k pages, necessitating the migration of DCs to the updated functional level.

• Security:There is also some security hardening, like Kerberos keys for local user accounts, not just for domain controllers as before. Mailslots have been used in windows cloud server Active Directory for decades. It is a legacy protocol that enables communication between clients and servers. It is not secure in today's threat era, so it's being dropped from server 2025 in favor of more modern security protocols.

• Storage performance:Microsoft is claiming a 90% increase in storage performance via new improvements that utilize Native Non-Volatile Memory Express (NVMe) SSDs. According to Microsoft, Storage Replica has been enhanced, with Storage Replica compression now accessible in all versions of windows cloud server and new features introduced for deduplication and Storage Spaces.

• Pumped-Up Hyper-V:Server 2025 Hyper-V virtual machines can now utilize as many as 1,792 virtual processors along with 29.7 terabytes of memory. GPU partitioning (GPU-P) is an innovative feature that enables a GPU to be shared among several VMs and facilitates Live Migration and failover clustering. Nevertheless, only certain hardware is supported: servers enabled with GPU-P must have SR-IOV support, possess AMD Milan processors or newer, or Intel Sapphire Rapids CPUs or newer.

Step-by-Step Installation of windows cloud server 2025

Understanding how installation works is a crucial step in smooth deployment, whether one is setting up a server for the first time or upgrading from a previous version. We are going to walk you through the step-by-step installation process of this new Windows cloud server.

Setup Pre-requisites: Before we can start the task, we will need to prepare everything in proper order, like downloading CD images. You can download the ISO image from the Microsoft Evaluation Center or a third-party hosting provider. 

Step 1 : Create VM or Bootable USB : For proper navigation and demonstration purposes, you’ll be creating a windows cloud server VM and a KVM server using the cockpit.

Start the virtual machine and wait for it to boot the windows cloud server 2025. If you require to install windows cloud server on a physical device, then you are required to create a bootable USB drive. 

Step 2: Configure the windows cloud server 2025 Installation: Configure the language and time settings: 

Now, set the keyboard layout

Select Install windows cloud server

Next, select the version you want to install. For this demo, you can install windows cloud server 2025 Datacenter Desktop Experience:

Accept the terms & conditions

Select the virtual disk you created when first creating your virtual machine or if it’s a physical device, it will also appear here:

Now, click to install

Wait for a moment for the installation process to complete

Step 3: Post-Installation Configuration: After completion, create your administrator account, input a password, and then click on Finish.

Congratulations, Welcome to Windows Cloud Server 2025.