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Microsoft Extended Service Terms (EST)
Here's what's changing for your cloud subscriptions in May 2026

Microsoft 365 Teaser

Microsoft Extended Service Terms (EST)
Here's what's changing for your cloud subscriptions in May 2026

Microsoft will update the terms of service for cloud subscriptions effective May 4, 2026, and will end the current grace period following the expiration of a subscription.

What does this mean for you?

Until now, subscriptions could often be continued or reactivated for a certain period of time after expiration at no additional cost.
This option will be completely eliminated in the future.

Specifically, this means that if a subscription is not renewed on time, you’ll have to decide right away what to do next.

Your options at a glance

  1. Renewing your subscription
    You can enable automatic renewal and continue using the service as usual—with optional adjustments or upgrades.
  2. Extended Service Term (EST)
    If the subscription is not renewed, it will automatically transition to a monthly cancellable transition period (EST):
    • Uninterrupted service
    • Monthly billing with a 3% surcharge on the current rate
    • If no monthly rate is available: +23% surcharge
    • Flexible options: renew, upgrade, or cancel at any time
  3. Cancellation at the end of the term
    The service will be completely terminated.
    Important: Reactivation is no longer possible (only data retention will continue in accordance with Microsoft guidelines).

Why the new policy?

With the “Extended Service Terms,” Microsoft is creating a flexible transition period so that companies:

  • make informed decisions
  • plan changes in a structured manner
  • avoid operational disruptions

Our Recommendation

Review your upcoming renewals early and determine in a timely manner how you would like to manage your subscriptions going forward. We’d be happy to assist you—from strategic planning to optimal licensing.