Microsoft is updating how CSP subscriptions are handled when they reach the end of their term.
Beginning May 4, 2026, the current renewal grace period will be retired and replaced with Extended Service Terms (EST).
What is EST?
EST is a paid extension that applies when a subscription expires without being renewed or cancelled.
With EST:
- Your service continues without interruption
- Billing switches to a monthly model
- Pricing increases to the standard monthly rate plus 3%
- If no monthly option exists, the increase may be 23%
What happens at the end of a subscription term?
At renewal time, there are 3 possible outcomes:
- Renew the subscription
- Cancel the subscription so service ends at expiry
- Move to EST, which keeps the service active at a higher monthly rate
For eligible subscriptions, if auto-renew is turned off and no cancellation has been set, Microsoft may move the subscription into EST within 24 hours of expiry.
Once that happens, the subscription can no longer be changed.
Default behavior for subscriptions with auto-renew turned off
To help avoid unexpected EST charges, subscriptions currently set with auto-renew off will default to cancel at end of term.
If continued service is needed, the renewal setting should be reviewed before the subscription expires.
What customers should do now
We recommend reviewing subscription end dates early and confirming whether each subscription should be:
- renewed
- cancelled
- or intentionally moved to EST
This helps avoid surprise charges and keeps licensing decisions clear and predictable.
Questions?
Our team is here to help you review upcoming renewals and choose the best option for your environment.