What's changing

Microsoft is updating how subscriptions behave at the end of their term, replacing the previous grace period model with a paid continuation option.

For subscriptions that expire on or after 4 May 2026, the end-of-term process changes as follows:

• If a subscription is renewed, it continues as normal
• If it is cancelled, access to services ends at the expiry date
• If no action is taken, the subscription moves to Extended Service Terms (EST)

Removal of the grace period

Under the previous model, expired subscriptions entered a grace period where services remained accessible for a limited time without additional cost. 

This grace period is being removed for eligible subscriptions and access to services after expiry is no longer free. 

The new EST behaviour applies to subscriptions based on their end date and renewal timing, with different handling depending on whether the subscription expires before or after the May 2026 changeover date.

How EST works

Extended Service Terms provides continued access to the subscription on a month-to-month basis after expiry, with the following characteristics:

• Billed monthly
• Pricing includes an uplift on the standard monthly rate (approximately 3%)
• Applies until the subscription is either renewed or cancelled
• Services remain active during this period

The key change is that expired subscriptions no longer default to a free grace period. Instead, they either:

• Stop at expiry (if cancelled), or
• Continue under a paid EST model

More information: https://learn.microsoft.com/en-us/partner-center/announcements/2026-march#reminders-and-updates-to-extended-service-terms-est