Microsoft is making an important change to how CSP subscriptions are managed once the contract term expires. This change affects how licenses are renewed and what costs come with it.

As of May 4, 2026, the current 30-day grace period that applies to expired subscriptions will disappear.

In its place comes the Extended Service Term (EST). This is a paid monthly extension that kicks in automatically when a subscription expires without being renewed.

A subscription qualifies for EST when the following conditions are met:

• The subscription was purchased or renewed on or after April 1, 2025

• The expiry date falls on or after May 4, 2026

• Auto-renewal is switched off

When a subscription expires and no action is taken:

• the service remains active

• billing switches to monthly billing

• a higher price is charged (with an uplift on the annual price)

This situation continues until the subscription is actively renewed or cancelled.

The alternative is to cancel the subscription at the expiry date. In that case, access to the service and the associated data is lost immediately.

When a subscription expires, there are three possible choices:

If auto-renewal is switched off and no action is taken, the subscription is automatically converted to EST.

It's important to evaluate in good time which option best fits your needs.

If you want continuity without an unexpected price increase, auto-renewal or a timely renewal is the most suitable choice. If you no longer actively use certain licenses, cancelling at the expiry date can help avoid costs

Do you have questions about this change, or would you like to review your license portfolio? Feel free to get in touch. Together, we'll look at which approach best fits your situation.