Extended Service Term (EST) now applies to new and renewed Microsoft Cloud subscriptions
March 5, 2026 ·
As announced a few weeks ago, Microsoft has activated the new Extended Service Term (EST).
- This change applies to all new and renewed cloud subscriptions purchased directly from Microsoft on or after 9 February 2026.
- Customers buying through Microsoft Partners will be affected for subscriptions expiring after 3 May 2026 (updated, previously 31 March 2026).
With EST, Microsoft has removed the former 90-day free grace period for expired subscriptions. The system now offers the option to purchase an Extended Service Term when a billing administrator disables automatic renewal.
What’s Changing from 1 April 2026?
Previously, when a subscription expired and auto-renew was turned OFF, Microsoft provided a free 30-day (previously 90-day) grace period where services remained accessible without payment.
From April 2026 onward, that free grace period is completely removed.
At subscription expiry, customers must choose one of the following:
- Renew to a new term – Continue service without disruption.
- Cancel at end of term – Services stop immediately at expiry. Data retention policies apply but subscriptions cannot be reactivated.
- Move to Extended Service Term (EST) – Continue services under a paid monthly extension.
What Is the Extended Service Term (EST)?
The Extended Service Term allows customers to continue accessing Microsoft services after expiration while final renewal decisions are being made.
Key EST Details:
- Service continues without interruption after expiry
- Billed monthly at the current monthly term rate + 3% uplift
- Cancel anytime (Billing is prorated)
- No long-term commitment
This provides a clear continuity option for customers who continue using services after expiration.
Automatic Move to EST – Important
Subscriptions will automatically transition into EST at expiration if ALL of the following conditions are met:
- Purchased on or after 1 April 2025
- Expires on or after 1 April 2026
- Auto-renew is set to OFF
If these conditions are met, EST will apply unless action is taken before the subscription end date.
Why This Matters
- Free service access after expiry is eliminated
- Ongoing usage now aligns directly with billing
- Encourages proactive renewal planning
- Provides flexibility without service disruption
- Avoids unexpected access loss for customers