Microsoft is implementing a significant change to the way CSP subscriptions are managed after the contract term expires. This change affects how licenses are renewed and the associated costs.
What’s changing?
Effective May 4, 2026, the current 30-day grace period that applies to expired subscriptions will be discontinued.
It will be replaced by the Extended Service Term (EST). This is a paid monthly extension that takes effect automatically when a subscription expires without being renewed.
A subscription is eligible for EST if the following conditions are met:
- The subscription was purchased or renewed on or after April 1, 2025
- The expiration date is on or after May 4, 2026
- Auto-renewal is turned off
What does this mean in practical terms?
When a subscription expires and no action is taken:
- the service will remain active
- switches to monthly billing
- a higher price will be charged (with an increase in the annual price)
This situation will continue until the subscription is actively renewed or canceled.
The alternative is to cancel the subscription on the expiration date. In that case, access to the service and the associated data will expire immediately.
What are your options?
When a subscription expires, there are three possible options:
- Enable auto-renewal
The subscription will be automatically renewed according to the existing terms and conditions. - Cancel on the expiration date
Your subscription will end immediately. Access to services and data will be discontinued. - Extended Service Term (EST)
The subscription continues on a month-to-month basis at a higher cost until a new choice is made.
An EST subscription can be canceled or renewed at any time, with pro-rata billing.
If auto-renewal is turned off and no action is taken, the subscription will automatically be converted to EST.
What do we recommend?
It’s important to assess early on which option best suits your needs.
If you want continuity without unexpected price increases, auto-renewal or timely renewal is the best option. If you are no longer actively using certain licenses, canceling them on the expiration date can help you avoid costs.
Support
Do you have any questions about this change, or would you like to review your license portfolio? Please feel free to contact us. Together, we’ll determine which approach best suits your situation.
