In version 7.5, APM Server introduced changes to its Index Lifecycle Management (ILM) policies, allowing for greater customization in managing Elasticsearch indices as they age. This feature, initially made available in Elasticsearch 6.7, categorizes indices based on their usage from hot to cold, with management actions defined by factors such as time and performance. APM Server now creates specific templates and ILM policies for different event types like transactions and errors, enabling tailored management of data. Default policies include phases like hot and warm, ensuring indices are efficiently managed without automatic deletion, though customization options allow for additional phases such as delete. Users can modify ILM policies through Kibana, and configurations are checked every 10 minutes by default, with the option to adjust this interval. APM Server on Elastic Cloud also supports ILM and can implement hot-warm-cold architectures, with future plans for more flexible policy options. The document emphasizes the importance of updating policies and templates when upgrading to newer versions, and invites feedback from users on their experiences.