Short answer: SQL Server 2025 has been generally available since November 18, 2025. It brings a native VECTOR data type, vector search and in-database AI model integration, plus a native JSON type, regular expressions and optimized locking. For mid-sized companies the headline is licensing scale: Standard edition now supports up to 32 cores and 256 GB of buffer pool memory, and Express allows 50 GB per database. With SQL Server 2016 out of support since July 14, 2026, upgrade planning is no longer optional.
Why SQL Server 2025 is a hot topic right now
- SQL Server 2016 reached end of support on July 14, 2026, yet it is still widely deployed.
- DiskANN vector indexes and vector search went GA in Azure SQL Database, Azure SQL Managed Instance and SQL database in Fabric on September 29, 2026, the same technology that ships in SQL Server 2025.
- EF Core 11, arriving with .NET 11 in November 2026, adds vector index, vector search and JSON support for SQL Server 2025, bringing these features straight to line-of-business developers.
AI built into the database
VECTOR type and distance functions
Embeddings are stored in an optimized binary format and surfaced as JSON arrays, in single (4-byte) or half (2-byte) precision. Functions include VECTOR_DISTANCE, VECTOR_NORM and VECTOR_NORMALIZE.
Vector indexes
CREATE VECTOR INDEX and VECTOR_SEARCH provide approximate nearest-neighbor search based on DiskANN. In on-premises SQL Server 2025 this still requires the PREVIEW_FEATURES database-scoped configuration, while it is GA in Azure SQL.
External models from T-SQL
CREATE EXTERNAL MODEL registers an AI model endpoint; AI_GENERATE_EMBEDDINGS and AI_GENERATE_CHUNKS create embeddings and chunk text directly in T-SQL. Per Microsoft’s edition matrix, these AI capabilities are available in Enterprise, Standard and Express alike.
ERP use cases
- Finding an item from a loose description even when the item card uses different wording.
- Suggesting similar substitute items when stock runs out.
- Semantic search across customer notes, contracts or support tickets.
- Hybrid full-text plus vector search, supported directly by EF Core 11.
Developer and engine features
- Native JSON type with JSON_OBJECTAGG, JSON_ARRAYAGG and JSON indexes.
- Regular expressions (REGEXP_LIKE, REGEXP_REPLACE, REGEXP_SUBSTR and more) for validating VAT numbers, phone numbers and IBANs in SQL.
- sp_invoke_external_rest_endpoint to call REST and GraphQL APIs from T-SQL.
- Change event streaming (requires PREVIEW_FEATURES).
- Optimized locking to reduce blocking and lock escalation, valuable when POS traffic and accounting postings run concurrently.
- ZSTD backup compression and tempdb space governance.
- Fabric mirroring for near-real-time analytics, replacing the discontinued Synapse Link.
- PBKDF2 password hashing by default and TLS 1.3 with TDS 8.0.
Editions and licensing
| Item | Enterprise | Standard | Express |
|---|---|---|---|
| Compute | OS maximum | Lesser of 4 sockets or 32 cores | Lesser of 1 socket or 4 cores |
| Buffer pool memory | OS maximum | 256 GB | 1,410 MB |
| Max database size | 524 PB | 524 PB | 50 GB |
| Vector search and AI | Yes | Yes | Yes |
| Resource Governor | Yes | Yes (new) | No |
| SQL Agent, backup compression, TDE | Yes | Yes | No |
| Availability groups | Full | Basic only | No |
| Online index rebuild | Yes | No | No |
Microsoft also introduced a free Standard Developer edition that mirrors Standard’s limits for dev/test, alongside Enterprise Developer. Web edition is discontinued, and Express with Advanced Services is gone because Express now includes those features. According to the launch coverage, pricing and the licensing model are unchanged.
When to upgrade
Upgrade now if
- You run SQL Server 2016 or earlier: no more security updates outside the paid ESU program.
- You hit the old Standard caps (24 cores, 128 GB) or the old 10 GB Express limit.
- You want AI-powered search over your data without moving it to another platform.
Wait if
- Your vendor application is not yet certified for SQL Server 2025.
- You depend on linked servers or replication; practitioners report that TDS 8.0/TLS 1.3 changes can break some setups and need configuration work.
A safe path
- Build a test environment with the free Standard Developer edition.
- Keep databases at their old compatibility level first, then move to 170 after testing.
- Benchmark heavy queries and reports, and test any RegEx usage before production.
- In-place upgrades are supported from SQL Server 2014 onward, but side-by-side migration gives an easier rollback.
What this means for Saudi businesses
Many Saudi SMEs run on-premises accounting and inventory systems on older SQL Server, often Express. The 50 GB Express limit gives free headroom, the larger Standard caps make the mid-tier license enough for bigger companies, and in-database AI means smart item and customer search can be built while data stays on your own servers.
How the Riv-ERP team helps
Riv-ERP’s cloud ERP is built on Oracle Database and Oracle APEX and is ZATCA Phase 1 and 2 compliant. Alongside it, the team builds custom solutions with .NET, C#, SQL Server and Blazor, backed by 20+ years of team experience. To assess a SQL Server upgrade or build a business app on top of it, request a quote or message us on WhatsApp at +966552007190.
Sources: What’s new in SQL Server 2025, SQL Server 2025 editions and features, SQL Server 2016 end of support, DiskANN GA in Azure SQL.
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Frequently Asked Questions
When was SQL Server 2025 released?
Microsoft announced general availability of SQL Server 2025 (version 17.x) on November 18, 2025.
Is vector search available in Standard and Express?
Yes. The VECTOR type, external models and embedding generation work in Enterprise, Standard and Express; DiskANN vector indexes still require PREVIEW_FEATURES in on-premises SQL Server 2025.
What are the new Standard edition limits?
The lesser of 4 sockets or 32 cores and 256 GB buffer pool memory per instance, and Resource Governor is now included.
How large can an Express database be?
Up to 50 GB per database, up from 10 GB, while compute stays at the lesser of one socket or four cores and memory at 1,410 MB.
SQL Server 2016 is out of support. What are my options?
Microsoft outlines three paths: upgrade to SQL Server 2025, move to Azure SQL, or buy Extended Security Updates as a short-term bridge.
Can I try SQL Server 2025 for free?
Yes: Standard Developer and Enterprise Developer are free for dev/test, Express is free for small production workloads, and Evaluation runs for 180 days.
