Update Apr 20 2022:
Hybrid Experience Updates
There are two more exciting updates for hybrid customers in Exchange Server 2019 CU12.
- CU12 includes a change to the Exchange Server License Terms. We have updated our licensing to add a product key for Exchange 2019 hybrid servers at no additional charge! This was previously available only for Exchange 2010, Exchange 2013, and Exchange 2016. Exchange Server 2019 CU12 and the Hybrid Configuration wizard have been updated to support this change.
- CU12 also includes support for using MFA-enabled admin credentials with Hybrid Agent cmdlets. The Hybrid Management PowerShell module now works with MFA-enabled admin accounts. This module includes the following cmdlets which can now be used with MFA:
When you have an Exchange hybrid deployment, you will likely have an on-premises server for Management (if you are using Azure AD Connect).
There is a free hybrid license you can use when you have no mailboxes on-premises and just use the server for management. The Hybrid Configuration Wizard will install it for you.
But be aware that this hybrid license is only available for Exchange 2016 and not for Exchange 2019 (and probably not for Exchange 2022)
If you do not host any mailboxes on the servers used to connect to Microsoft 365 you can license them using the Microsoft 365 Hybrid Configuration Wizard (HCW) which you can find here. The HCW validates your Microsoft 365 subscription and installs the appropriate licenses on your servers. Note that the free Exchange Server license is not available for Exchange 2019 hybrid servers.https://www.microsoft.com/en-us/microsoft-365/exchange/microsoft-exchange-licensing-faq-email-for-business
As you probably also know we have historically provided a free license for these ‘management’ servers if their only use is to properly manage Exchange attributes when recipient objects are mastered on-premises. You also know that we never provided this free license type for Exchange Server 2019. .
For this reason, we want to make our recommendation for this scenario clear. Our broad recommendation is to keep Exchange Server 2016 in production use until such point as we release a solution that allows those servers to be removed. As explained earlier, Extended Support still provides security and time zone updates and so keeping them in production and ensuring they are properly patched does not increase your risk profile in any way.https://techcommunity.microsoft.com/t5/exchange-team-blog/exchange-server-2016-and-the-end-of-mainstream-support/ba-p/1574110
Everyone is still waiting for a solution from Microsoft to get rid of this “management” servers.