Microsoft has announced the implementation of the new Extended Service Terms (EST) policy for the Cloud Solution Provider (CSP) channel, effective April 1, 2026. This change will fundamentally alter how “expired subscriptions” are handled. To help enterprise clients prepare in advance, Superhub has compiled this essential guide to help you master your rights and strategies under the new system. 

Previously, when a subscription expired without renewal, services typically entered a short “Free Grace Period.” However, after April 1, 2026, this free mechanism will be officially discontinued. 

Replacing it is EST—a “paid extended buffer period.” Simply put, if your subscription expires and auto-renewal is disabled, the system will no longer allow free usage. Instead, you can choose to enter the paid EST to ensure business operations are not interrupted. This offers enterprises a flexible option to “buy time” with a monthly fee before committing to a long-term contract. 

Related Reading: Stay updated on other recent licensing changes in our guide on Realigning Global Licensing for Microsoft 365. 

From a business operations perspective, two key aspects of the new policy directly impact your budget and daily management: 

1. Cost Calculation: Monthly Billing + 3% Uplift 

Subscriptions entering EST status will operate on a monthly billing model. The fee structure is typically the “current monthly price + a 3% uplift.” This means remaining in EST long-term is slightly more expensive than a standard renewal, making it more suitable for short-term transitions. 

2. High Flexibility: Daily Proration, Cancel Anytime 

Although EST requires extra payment, it offers flexibility that the previous grace period did not. 

• Exit Anytime: You can stay in EST indefinitely (as long as you are willing to pay the uplift), or choose to cancel or convert back to a standard contract at any time. 
• Prorated Refund: This is a major advantage of the new system. If you decide to terminate or convert during the EST period, the system calculates fees on a prorated basis. You only pay for the actual days used, and the remaining balance will be refunded. This ensures every penny is spent on actual service. 

• When your subscription expires after April 2026, you will face the following three choices. We recommend IT administrators refer to the table below to pre-plan strategies for different services: 

The core idea of Microsoft’s new policy is simple: “If you don’t actively cancel, the service will continue—and be billed—under EST to protect data integrity.” 

Key Changes 

• Subscriptions with Auto-renew turned off will no longer receive a free grace period and will automatically enter paid EST
  (standard rate +3%, or +23% if no monthly plan exists). 

• Partners will now choose between:  
  • Cancel at end of term (service stops immediately), or 
  • Opt into paid EST. 

The policy applies to Commercial, Education, and Non-profit license-based services across all subscription terms. 

Superhub will continue to share updates. If you need help reviewing affected subscriptions, our Account Managers are ready to assist.