Services
Summary
Microsoft introduces a paid Extended Service Term (EST) replacing the automatic grace period, allowing monthly paid service extensions after subscription end. Options at term end include timely renewal, paid EST with prorated charges and no changes allowed, or cancellation with 90-day data retention. Applies to subscriptions under the Microsoft Customer Agreement starting Feb 9, 2026 (direct) and April 1, 2026 (CSP).
Details
Microsoft is introducing a new paid Extended Service Term (EST) to give customers additional time at the end of a subscription term to make the right subscription choices for their business without any service disruption.
Customers who don’t choose to renew their subscription by the renewal date will now have the ability to select a paid Extended Service Term (EST) option. This replaces the previous option of an automatic grace period that will be retired.
Your Options at Subscription End:
When a subscription reaches the end of its term, customers now have three options:
- Renew on time
- Renew (with or without changes to subscription terms) before the end date to continue service without interruption.
- *New* Extend service with a paid Extended Service Term (EST)
- Monthly, paid extension to maintain service while finalizing renewal plans
- Can be canceled or converted back to a standard subscription at any time
- Prorated charges—pay only for days used
- Pricing is 3% higher than the standard monthly rate
- Seats and service level cannot be changed while in EST
- Cancel at term end
- No additional charges
- Service ends immediately at term end
- Customer data is retained for 90 days, then deleted
These options provide a clear, predictable experience at expiration, making it easier to renew, temporarily extend service without disruption, or cancel
Who This Applies To:
This change applies to Online Services subscriptions governed by the Microsoft Customer Agreement (MCA).
- Customers who purchase directly through Microsoft will make changes through the Microsoft Admin Center or, where applicable, through their Microsoft sales specialist.
- Customers who purchase through a Channel Sales Partner (CSP) have the same options and will work with their partner to select the appropriate action at expiration.
When This Takes Effect:
- Customers who purchase directly through Microsoft: Applies to subscriptions purchased or renewed on or after February 9, 2026.
- Customers who purchase through a CSP partner: Applies to subscriptions with expiration dates on or after April 1, 2026 (confirm impacted subscriptions with your partner).