Microsoft Partner Center – Extended Service Terms (EST) Updates

1. Overview

• Extended Service Terms (EST) provide new end-of-term options for subscriptions, giving partners and customers more flexibility.
• Officially launched in Production on February 16, 2026, mandatory from May 4, 2026.
• EST adds a 3% premium (or 23% if no monthly billing plan exists) to the monthly subscription price.
• Customers must choose one of three options at end of term:
  1. Renew subscription (same as before).
  2. Cancel at term end (immediate service termination).
  3. Renew to EST (paid extension with flexibility to upgrade, cancel, or continue).

2. Key Dates

• Nov 3, 2025: EST available in Sandbox.
• Feb 1, 2026: EST SKUs appear in price list preview.
• Feb 16, 2026: EST live in Production and APIs.
• Feb 27, 2026: Partners can export EST subscription data.
• May 4, 2026: EST becomes mandatory for eligible subscriptions.

3. Known Issues (as of Feb 16, 2026)

• EST options visible for some discontinued SKUs (fix in progress).
• Some EST SKUs temporarily labeled “do not use” in February price list.
• EST not yet available for certain products (e.g., Dragon Copilot, Microsoft Entra Private Access, Office 365 GCC G5 without Audio Conferencing).

4. Eligible Subscriptions

• Applies to Commercial, Education, Nonprofit, and Government (GCC) segments.
• Includes special offers and “end-of-sale-with-conversion” SKUs.
• Only subscriptions purchased or renewed between Apr 1, 2025 – May 4, 2026 with end dates after May 4, 2026.
• Excludes trial subscriptions and discontinued SKUs.

5. Transition Process

• Subscriptions with auto-renew disabled but no explicit cancel instruction will be automatically converted to EST.
• Partners must explicitly set scheduledActions:Cancel with autoRenew:False to ensure cancellation.
• Export tools in Partner Center allow partners to download lists of subscriptions set to transition into EST.

6. Pricing & Billing

• EST SKUs appear in a separate price list starting February 2026.
• Pricing follows monthly cycles, with a 3% premium over standard monthly rates.
• Partners can access EST pricing data via API (PricesheetView = licensebasedest).
• EST SKUs are labeled with “Extended Service Term” in titles.

7. API & Technical Details

• New API actions allow partners to:
  • Renew to EST at term end.
  • Cancel at term end explicitly.
• EST subscriptions auto-renew monthly unless canceled or converted.

8. Why It Matters

• EST eliminates free grace periods after subscription expiry.
• Provides flexibility for customers needing more time to decide on renewals, upgrades, or cancellations.
• Ensures continuity of service while giving partners clearer control over subscription lifecycle.

🔎 Other Related Updates

• Sandbox support for EST SKUs.
• Webhook support for EST transitions.
• Comparison between standard subscriptions and EST capabilities.
• Rules for suspension, reactivation, and transfer of EST subscriptions.
• Promotions and incentives applicable to EST.