Microsoft has announced an important change to how Microsoft NCE subscriptions behave after expiry. This update takes effect on 1 April 2026.
What’s Changing (From 1 April 2026)
Microsoft will remove the free grace period for accessing services on non‑renewed CSP subscriptions.
Once a subscription reaches its end date, customers must choose one of the following options:
✅ Renew to a new term
❌ Cancel at end of term (services stop immediately)
🔁 Move to an Extended Service Term (EST)
What Is the Extended Service Term (EST)?
The Extended Service Term allows customers to maintain access to Microsoft services while deciding their next steps, at a dearer prorated cost.
Key details:
- Services continue uninterrupted after expiry
- Priced at the standard monthly rate + 3% uplift
- Cancel anytime (billing is prorated)
- No long‑term commitment required
This provides a clear continuity option for customers who continue using services after expiration.
Automatic Move to EST — Important
Effective 1 April 2026, subscriptions will automatically move into EST at expiration if all of the following apply:
- 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.
Next Steps for Resellers
To prepare, Microsoft recommends the following:
- Review the upcoming system changes and subscription behaviour
- Discuss renewal options with customers before their term ends
- Help customers choose the best option (renew, cancel, or EST)
Early planning will help avoid unexpected billing and service disruptions.
Why This Matters
This change:
- Removes free usage after expiry
- Aligns ongoing service access with cost
- Encourages proactive renewal conversations
- Provides flexibility without service interruption
If you’d like help reviewing customer subscriptions, planning renewals, or understanding how EST impacts billing, please reach out to the Leader Cloud Team — we’re here to help.
Thanks,
The Leader Cloud Team
