The end of grace periods. The ‘Extended Service Term’ explained
Автор: Q-Advise License & Cloud Experts
Загружено: 2025-12-10
Просмотров: 3
Описание:
First, Microsoft is ending the long-standing grace period for Cloud Solution Provider renewals.
Previously, when a CSP subscription expired, customers enjoyed a short grace window, often 7 to 30 days to renew without penalty or service disruption. That flexibility is now gone.
Starting April 1, 2026, customers who miss renewal deadlines will automatically roll into an Extended Service Term (EST) essentially a month-to-month continuation charged at list price plus 3 percent.
Any financial implications on organizations
What looks like a small change has major financial implications.
If you manage hundreds or thousands of licenses, even a brief delay could mean thousands in unplanned costs.
And remember: in the EST phase, you lose your prior discount level. Once the new billing cycle starts, that premium applies until you formally renew or cancel.
What to do as an organization with this change
Audit all CSP subscriptions, align renewal dates with your financial calendar, and ensure your partner contract reflects this new term, especially if you manage multi-country or multi-tenant environments.
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