Microsoft is introducing a significant change to the Cloud Solution Provider (CSP) programme on 4th May 2026 The long‑standing free grace period at the end of a CSP subscription will be permanently removed.
In its place, Microsoft is introducing Extended Service Terms (EST): a paid, month‑to‑month extension designed to prevent accidental free usage and ensure customers make clear renewal decisions.
These changes apply to all CSP customers and every partner involved in subscription lifecycle management. Below is a clear summary of what’s changing and why it matters.
What Is Changing?
From 4th May 2026, when a CSP subscription reaches its end date, customers must actively choose one of three renewal outcomes [learn.microsoft.com]:
- Renew the subscription: Continue the service as normal for a new term.
- Cancel at the end of the term: Access stops immediately at expiration, though data retention policies still apply.
- Move into Extended Service Terms (EST): A paid, flexible month‑to‑month extension used when a customer needs more time before deciding.
The Extended Service Terms (EST) replaces the free post‑expiry access that customers could utilise or rely on. Under EST:
- Service continues uninterrupted
- Billing switches to a monthly term
- A 3% uplift is applied to the monthly SKU
- A 23% uplift may apply where no monthly SKU exists
EST isn’t something customers “buy” like a standard SKU. Instead, a subscription automatically enters EST when:
- The subscription reaches the end of term
- Auto‑renew is switched off
- No renewal or cancellation action is taken
Key impact:
If auto‑renew is switched off and no action is taken before the term ends, the subscription may automatically move into paid EST — resulting in unexpected additional costs.
Need Help Managing your Software Licenses?
Effective software asset management has never been more important. With the removal of the CSP grace period, renewal decisions must be made deliberately and on time to avoid service disruption and unplanned spend.
Relying solely on a reseller’s self‑service portal is no longer enough.
If you need support tightening your renewal processes or want help understanding how EST will affect your Microsoft estate, The SAM Club is here to help.
Get in touch to learn how we’re using Monday.com and structured renewal workflows to help our clients stay in control of their software assets.