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Introducing New Paid Extended Service Term (EST)

Plan for Change

Message ID

MC1216259
View in Admin Center

Services

Microsoft 365 suite

Summary

Microsoft introduces a paid Extended Service Term (EST) starting February 9, 2026, replacing the automatic grace period. At subscription end, customers can renew on time, pay for a monthly EST with prorated charges and 3% higher rates, or cancel with data retained for 90 days. Applies to Microsoft Customer Agreement subscriptions.

Details

Updated February 9, 2026: We have updated the CSP timeline. Thank you for your patience. 

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:

  1. Renew on time
    • Renew (with or without changes to subscription terms) before the end date to continue service without interruption.
  2. *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
  3. 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 May 4, 2026 (previously April 1) (confirm impacted subscriptions with your partner). 

Timeline

Published
Jan 9, 2026
Message published to Message Center
Updated
Feb 9, 2026
Message content updated
End Date
May 4, 2026
Message timeline ends

Tags

#Updated message#Admin impact

Category

Plan for Change

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