Microsoft Extended Service Terms - What’s changing and what it means for you
by Maybelline Middleton
Microsoft is making an important change to Microsoft 365 and other CSP subscriptions at the end of their term.
From May 2026, Microsoft is removing the long standing 30 day free grace period that previously applied after a subscription expired. This change introduces a new model called Extended Service Terms (EST), which affects what happens if no action is taken at renewal.
Written by
What’s changing?
Previously, when a subscription reached its end date, services could continue for up to 30 days at no charge while a renewal decision was made.
This grace period has now been fully retired.
Instead:
- When a subscription reaches its end date, you must renew, cancel, or actively choose to move onto EST
- If no action is taken, the subscription automatically moves into Extended Service Terms
- There is no free continuation of service
What are Extended Service Terms (EST)?
Extended Service Terms are a paid, month‑to‑month extension that keeps your services running while you decide what to do next.
Under EST:
- Services continue without interruption
- Billing moves to a monthly basis at the standard monthly price plus a 3% uplift
- Charges are fully prorated – you only pay for the days used
- You can renew, change, or cancel at any point
EST is designed to provide flexibility, but it is no longer a free buffer period.
What does this mean for you?
- Your subscription end date is now a hard decision point
- Doing nothing will result in paid EST charges
- Billing becomes clearer and more predictable, with no unexpected usage after expiry
- Your data and services remain fully accessible while a subscription is active, including during EST
If a subscription is cancelled, Microsoft’s standard 90‑day data retention period applies, after which data is permanently deleted.
When does this take effect?
- 16th February 2026 – EST functionality became available
- 4th May 2026 – Enforcement begins
From this point, subscriptions must be renewed, cancelled, or will automatically enter paid EST
What should you do next?
We recommend reviewing your upcoming Microsoft subscription renewals in advance and deciding whether you want to:
- Renew into a new term
- Cancel at the end of the current term
- Use EST temporarily (with the associated cost)
Our team is here to help you plan ahead, avoid unexpected charges, and ensure continuity of service.
If you’d like to discuss your renewals or have any questions about this change, please get in touch with your Bechtle Account Manager.