Microsoft is changing how Microsoft 365 subscriptions are handled when they reach the end of their term.
From early May 2026 (enforced from 4 May 2026), Microsoft will remove the long‑standing free grace period that previously applied after a subscription expired. This is being replaced with a new policy called Extended Service Terms (EST).
What’s changing?
When a Microsoft 365 subscription reaches its end date, there are now only three possible outcomes:
- Renew for a new term
- Cancel at expiry, which stops the service at the end date
- Move to Extended Service Terms (EST), where the service continues month‑to‑month while a decision is finalised
If a subscription moves into EST, it is billed monthly at the standard monthly rate plus a small uplift. This provides flexibility but is typically more expensive than renewing on time.
What this means for customers
- There is no longer a free grace period after a subscription expires
- Doing nothing at renewal time may result in higher monthly charges
- Renewal decisions now need to be made before the end date to avoid unexpected costs
What we’re doing
We are monitoring upcoming Microsoft renewals and will contact you ahead of time to confirm your preferred option — renewal, licence changes, or cancellation — so there are no surprises.
If you’d like to review your Microsoft 365 licensing early, please contact us.
Quarta-feira, Abril 1, 2026
