Table of Contents
Summary
- Introduction of a paid Extended Service Term (EST) for additional time at the end of a subscription term.
- Three options available at subscription end: timely renewal, paid EST extension, or cancellation.
- EST allows service maintenance during renewal planning, with prorated charges and inability to change seats or service level.
- Customers purchasing directly or through a Channel Sales Partner have the same options to manage their subscriptions.
- Change categorized as having an admin impact, requiring administrators to plan accordingly.
Admin Impact: Medium
User Impact: Low
Release Start: 09 Feb 2026
Release End: 09 Feb 2026
Services: M365
Category: Plan for change
Tags: Admin Action
History
1/9/2026 Item Added to Message Center
Microsoft Message
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:
Renew on time
- Renew (with or without changes to subscription terms) before the end date to continue service without interruption.
*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
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 April 1, 2026 (confirm impacted subscriptions with your partner).