As announced a few weeks ago, Microsoft has activated the new Extended Service Term (EST).
- This change applies to all new and renewed cloud subscriptions purchased directly from Microsoft on or after 9 February 2026.
- Customers buying through Microsoft Partners will be affected for subscriptions expiring after 3 May 2026 (updated, previously 31 March 2026).
With EST, Microsoft has removed the former 90-day free grace period for expired subscriptions. The system now offers the option to purchase an Extended Service Term when a billing administrator disables automatic renewal.
The EST adds a 3% surcharge to the monthly subscription price and keeps the service active on a month-to-month basis while internal renewal decisions are being finalized. In short: no more free buffer > continued access now comes at a cost.
From Microsoft Partner documentation:
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.
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).
In my example, a Microsoft 365 Business Basic subscription with a monthly commitment costs CHF 4.32.
The subscription now includes the option to add an extended service term if you change the billing recurrence.
The EST price increases to CHF 4.45 per month, reflecting the 3% uplift.
What raises questions is the effective start date. According to the screenshot, my subscription expires in March 2026, yet the EST is scheduled to begin in October 2026. The seven-month gap does not align with my subscription term. The referenced support article is a dead link or linked incorrectly.
I think Microsoft has a bug in its EST calculation. 🤷♂️
