Extended Service Term for CSP Subscriptions, What You Need to Know
Starting April 1, 2026, Microsoft will remove the free grace period for expired CSP subscriptions. If a subscription is not renewed, customers must either renew, cancel immediately, or move to a paid extended service term with a three percent uplift. Taking action before expiration will help avoid service disruption or unexpected billing.
Note: Enforcement of Extended Service Terms in CSP is extended from the previously announced April 1, 2026, to May 4, 2026.
Table of Contents
Beginning April 1, 2026, Microsoft will change how Cloud Solution Provider subscriptions behave after expiration. With the introduction of the extended service term for CSP subscriptions, the current free grace period will be discontinued, and customers will need to actively choose how to proceed when a subscription reaches the end of its term.
This update affects all CSP purchase models and is designed to align ongoing service usage with billing, while giving customers a short window to make renewal decisions without immediate service loss.
Microsoft CSP Subscription Changes After Expiration
Today, many CSP subscriptions continue to function for a limited time after expiration at no additional cost. Starting in May 2026, this free access will no longer be available.
When a subscription expires, customers will have three options:
Renew the subscription into a new term
Cancel at the end of the term, services end immediately
Continue using services under an extended service term
This change applies to direct bill, indirect resellers, distributors, MCA-E agreements, and buy-online subscriptions.
Extended Service Term Pricing and Billing Details
The extended service term allows customers to maintain access to Microsoft services while deciding whether to renew or cancel.
Key details include:
Billed monthly at the standard subscription rate
Includes a three percent uplift over standard pricing
Can be canceled at any time, with prorated billing
This model ensures that continued usage after expiration is properly billed, while avoiding unexpected service shutdowns.
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When Subscriptions Move to the Extended Service Term Automatically
A subscription will automatically move into the extended service term if:
The subscription was purchased on or after April 1, 2025
The subscription expires on or after April 1, 2026
Auto renew is turned off
If these conditions are met and no action is taken, billing under the extended service term starts immediately after expiration.
What Customers Should Do Before Renewal
To avoid unexpected charges, customers should review their subscriptions before they expire.
Check expiration dates and renewal settings
Decide whether to renew, cancel, or use the extended service term
Review the cost impact of the three percent uplift
This is also a good time to remove unused licenses.
How 365 Cloud Store Can Help
365 Cloud Store helps customers manage CSP subscriptions and avoid surprises. Our team reviews renewal timelines, explains options clearly, and helps you choose the right path based on your usage.
If you want help preparing for this change, contact us before April 2026 and stay in control of your Microsoft licensing.
Written by Iovalli Acevedo Marketing Manager
February 11, 2026
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