For years, some Microsoft customers have taken advantage of the subscription grace period—the short window after a license expires when services remain active without immediate payment. Many would let their subscription lapse, enjoy nearly a month of continued service, and then renew just before the deadline.

From April 1, 2026, that grace period will be eliminated. Microsoft is replacing it with a new Extended Service Term (EST) policy that changes how post-expiry access works for all license-based services across the Cloud Solution Provider (CSP), Microsoft Customer Agreement (MCA-E), and Buy-Online channels.

The Change Out

Under the new rules, once a subscription expires and auto-renew is turned off, customers will no longer receive free access. Instead, they’ll need to choose one of the following options:

• Renew the subscription before it expires.
• Cancel at expiration, which immediately disables the service.
• Move to a paid Extended Service Term , a temporary extension billed monthly at the standard rate plus a 3% uplift (or 23% uplift where no monthly plan exists).

This means that customers who used to rely on the grace period as a cost-saving buffer will need to plan ahead and renew on time or pay for continued service under EST.

Who This Affects

The new policy applies to:

• Subscriptions bought on or after April 1, 2025
• Subscriptions expiring on or after April 1, 2026, where auto-renew is turned off.

What This Means for Cobweb Customers

If your Microsoft subscription renewal date falls after April 1, 2026, our Cobweb experts will guide you through this change to ensure uninterrupted service. We’ll help you understand your renewal options, manage your timelines, and avoid unexpected service disruptions. As your trusted Microsoft partner, we are here to ensure the transition to the new Extended Service Terms is clear, compliant, and seamless.

Key Takeaways

• No more free grace period after April 1, 2026.
• If auto-renew is off, service will end immediately upon expiry unless renewed or moved to a paid EST.
• EST provides flexibility but comes with a 3% uplift and limited modification options (no seat changes or upgrades).
• Renewal planning is now more important than ever, our experts can help you stay ahead.

Talk to Us

If you’re still unsure how these changes affect your organisation, our licensing specialists are ready to help you prepare for the April 2026 rollout. Contact us today to ensure your Microsoft subscriptions remain secure, compliant, and uninterrupted under the new Extended Service Terms.