Overview

Extended Service Terms are new end-of term options for partners that need more time to decide between canceling a subscription or renewing it. This added flexibility costs 3% above the monthly rate for the stock keeping unit (SKU) but allows for ultimate flexibility of renewing, upgrading, or canceling at any time.

https://learn.microsoft.com/en-us/partner-center/customers/extended-service-terms

Effective April 1, 2026, the free grace period for accessing services on nonrenewed subscriptions is discontinued. Customers who don't renew must either cancel at end of term and lose access immediately or enter a paid extended service term (EST) to continue service. The extended service term bills monthly at the current monthly term rate plus a 3% uplift (or 23% if no monthly plan exists).

EST includes three end of term options, replacing the historic 2 (renew on/off). These three options give partners more control over what happens at the end of term and allows them more options if more time is needed to resolve customer intent.

Today, after a subscription expires, partners have two options:

Renew the subscription.
Turn autorenew off, which triggers a grace period of free service for a limited time.
In the future state, the free grace period is eliminated, and partners/customers must choose to:

Renew the subscription works like it always has, supporting scheduled changes or renewing as is.
Cancel at expiration stops customer's services at the end of the term. Data retention is preserved but can'tbe recovered or reactivated.
Renew to EST to continue service, billed at the EST rate (monthly term rate + 3% uplift). This option provides flexibility for further changes.