Microsoft has announced an important change to how Microsoft New Commerce Experience (NCE) subscriptions behave at the end of their term. These changes begin from 1 April 2026, with full enforcement in the CSP program from 4 May 2026.
What’s Changing
From 1 April 2026, Microsoft will begin removing the free grace period that previously applied to non‑renewed CSP subscriptions.
When a subscription reaches its end date, customers must now choose one of the following options:
✅ Renew the subscription for a new term
❌ Cancel at end of term (services stop immediately at expiry)
🔁 Move to an Extended Service Term (EST) to continue service
There will no longer be free usage after a subscription expires.
What Is the Extended Service Term (EST)?
The Extended Service Term (EST) allows customers to continue using Microsoft services after their subscription end date while they decide on their next steps.
Key details:
- Services continue uninterrupted after expiry
- Billed monthly at the standard monthly rate plus a 3% uplift
- Can be cancelled at any time (charges are prorated)
- No long‑term commitment required
- Intended as a temporary extension, not a renewal
EST provides flexibility while ensuring that continued service access is aligned with cost.
Automatic Move to EST — Important Dates
While the policy change starts 1 April 2026, automatic enforcement in CSP systems begins from 4 May 2026.
From 4 May 2026, a subscription will automatically move into EST at expiry if all of the following conditions are met:
- The subscription was purchased or renewed on or after 1 April 2025
- The subscription expires on or after 1 April 2026
- Auto‑renew is set to OFF
- No action (renewal or cancellation) is taken before the end date
If these conditions apply, EST charges will begin unless the subscription is renewed or cancelled before expiry.
What This Means for Resellers & Customers
Microsoft recommends taking proactive steps to avoid unexpected billing:
- Review upcoming subscription expiry dates
- Discuss renewal intentions with customers early
- Ensure each subscription is clearly set to renew, cancel, or move to EST
- Avoid leaving subscriptions unplanned at end of term
Early planning helps prevent surprise charges and service disruption.
Why This Change Matters
This update:
- Removes free usage after subscription expiry
- Aligns ongoing service access with billing
- Encourages clearer renewal and cancellation decisions
- Provides flexibility without service interruption via EST
If you need help reviewing subscriptions, planning renewals, or understanding how Extended Service Term billing may impact your customers, please contact the Leader Cloud Team — we’re here to help.
Thanks,
The Leader Cloud Team
