Extended Service Term

Overview

The Extended Service Term (EST) is a feature in CSP available from May 4, 2026, that allows an expired Subscription to keep running with continued service, billed at an uplifted rate.

Before the Extended Service Term availability

Prior to the introduction of the Extended Service Term, at the end of a Subscription term, a partner would work with a customer to manage their next steps by choosing from one of two options:

• Auto-Renew on
• Auto-Renew off

If Auto-Renew is turned on, users continue to have access to the services, and a new Subscription is started using the existing term and billing option. Prices from the current price list apply at this stage. If Auto-Renew is turned off, there’s a 30-day grace period during which users continue to have access to the services without charge.

After the Extended Service Term availability

After the introduction of the Extended Service Term, at the end of a Subscription term, a partner can work with a customer to manage their next steps by choosing from one of three options:

• Renews to new term
• Renews to Extended Service Term
• Cancels at end of term

Renews to new term

The experience with this option is the same as the “Auto-Renew on” option from before the Extended Service Term availability, while the other two options are new.

Renews to Extended Service Term

This option is designed to give partners a flexible way to make changes at any time while a customer determines their next steps. Until this happens, upfront monthly billing continues at the current monthly term rate plus an uplift of 3%, or 23% if a monthly term option doesn’t exist. This means that when a customer is ready, they can work with their partner to move to another option by canceling the Extended Service Term at any time for a pro-rated refund. The Extended Service Term licenses are transacted using specific SKUs that partners will find on an EST price list.

Cancels at end of term

This is similar to the previous “Auto-Renew off” option from before the Extended Service Term availability, but without the 30-day grace period, which means access to the services will stop immediately.

Resources

The Microsoft Learn documentation is updated regularly and provides a useful overview, timelines, and API details. Partners can access a handy Briefing Deck and FAQ.