check before: 2026-02-09
Product:
Microsoft 365 admin center, Microsoft 365 suite, SharePoint
Platform:
Online, World tenant
Status:
Change type:
Admin impact, Updated message
Links:
Details:
Summary:
Microsoft introduces a paid Extended Service Term (EST) starting February 9, 2026, replacing the automatic grace period. At subscription end, customers can renew on time, pay for a monthly EST with prorated charges and 3% higher rates, or cancel with data retained for 90 days. Applies to Microsoft Customer Agreement subscriptions.
Details:
Updated February 9, 2026: We have updated the CSP timeline. Thank you for your patience.
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 May 4, 2026 (previously April 1) (confirm impacted subscriptions with your partner).
Change Category:
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Scope:
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Release Phase:
Created:
2026-01-10
updated:
2026-02-10
Task Type
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Docu to Check
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MS Urgency
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MS workload name
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summary for non-techies**
Microsoft is introducing a paid Extended Service Term (EST) for its subscriptions under the Microsoft Customer Agreement, allowing users to extend their service temporarily after expiration for a fee, starting February 9, 2026, for direct purchases and May 4, 2026, for partner purchases.
Direct effects for Operations**
Service Disruption
If customers do not renew their subscription or opt for the Extended Service Term (EST), they will experience immediate service termination, leading to potential loss of access to critical applications and data.
- roles: IT Administrator, End User
- references: https://www.microsoft.com/en-us/microsoft-365/blog/2023/02/09/introducing-new-paid-extended-service-term-est/
Increased Costs
Choosing the EST option incurs a 3% higher rate than the standard monthly rate, which could lead to unexpected budget increases for the organization if not planned for.
- roles: Finance Manager, IT Administrator
- references: https://www.microsoft.com/en-us/microsoft-365/blog/2023/02/09/introducing-new-paid-extended-service-term-est/
Data Retention Issues
If a subscription is canceled without opting for EST, customer data will be retained for only 90 days before deletion, risking loss of important information if not backed up or migrated in time.
- roles: Data Manager, IT Administrator
- references: https://www.microsoft.com/en-us/microsoft-365/blog/2023/02/09/introducing-new-paid-extended-service-term-est/
Configutation Options**
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Opportunities**
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Potentional Risks**
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IT Security**
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explanation for non-techies**
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** AI generated content. This information must be reviewed before use.
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change history
| Date | Property | old | new |
| 2026-02-10 | MC MessageTagNames | Admin impact | Updated message, Admin impact |
| 2026-02-10 | MC Summary | Microsoft introduces a paid Extended Service Term (EST) replacing the automatic grace period, allowing monthly paid service extensions after subscription end. Options at term end include timely renewal, paid EST with prorated charges and no changes allowed, or cancellation with 90-day data retention. Applies to subscriptions under the Microsoft Customer Agreement starting Feb 9, 2026 (direct) and April 1, 2026 (CSP). | Microsoft introduces a paid Extended Service Term (EST) starting February 9, 2026, replacing the automatic grace period. At subscription end, customers can renew on time, pay for a monthly EST with prorated charges and 3% higher rates, or cancel with data retained for 90 days. Applies to Microsoft Customer Agreement subscriptions. |
| 2026-02-10 | MC Last Updated | 01/10/2026 00:04:44 | 2026-02-10T00:05:27Z |
| 2026-02-10 | MC Messages | 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). | Updated February 9, 2026: We have updated the CSP timeline. Thank you for your patience.
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 May 4, 2026 (previously April 1) (confirm impacted subscriptions with your partner). |
| 2026-02-10 | MC Title | Introducing New Paid Extended Service Term (EST) | (Updated) Introducing New Paid Extended Service Term (EST) |
| 2026-02-10 | MC End Time | 03/31/2026 09:00:00 | 2026-05-04T09:00:00Z |
Last updated 2 weeks ago ago
