An Overview of Microsoft's Extended Service Terms (EST) Options in PRISM

What is Extended Service Terms (EST) 

Beginning May 4, 2026, Microsoft is removing the free grace period that previously applied when a subscription expired without renewal. As a result, subscriptions with auto‑renew turned off will automatically move to a paid Extended Service Term (EST) unless action is taken.

Renewal Management Options from May-2026

• Renew the subscription on time (avoids any disruption).
• Cancel at expiration stops services at the end of the term. Data retention is preserved but can't be recovered or reactivated.
• Enter paid EST (Extended Service Term) to continue service, at the EST rate (monthly term rate + 3% uplift).

Important: EST is a paid continuation of service. Charges will apply unless the subscription is proactively cancelled or renewed.

EST Rollout Timelines: 

• February 6–15, 2026
  • Microsoft has completed the conversion of eligible subscriptions to EST.
  • Eligible subscriptions include subscriptions purchased on or after April 1, 2025, expiring on or after May 4, 2026, with auto-renewal disabled.
  • Microsoft will complete the conversion backfill for specialized offers by March 23, 2026.
• March 30, 2026
  • EST Management will be available in PRISM.
  • Partners may begin modifying renewal options.
• May 4, 2026
  • Microsoft will begin enforcing EST policies. The complimentary grace period for cancelled subscriptions will end.

EST Management in PRISM

PRISM now offers an integrated experience for managing EST options. Partner can choose between the three different renewal options from the Manage Subscriptions page. 

To remove/change EST renewal:

Select a subscription that you like to change the renewal options. Click the “Manage Renewal” button as highlighted in the screenshot below.

A pop-up window appears for renewal management, as illustrated in the screenshots below.

Select the required renewal option and click "Update Renewal Options" at the bottom of the screen and click "Update Renewal Options".

Billing & Invoicing for EST Subscriptions:

All EST Subscriptions will be invoiced separately from other subscriptions. EST Subscriptions are billed via the PRISM modern billing platform, Recon File Billing Engine (PNBE). Invoices can be viewed and downloaded from the Invoices page within PRISM.  

Frequently Asked Questions

What does EST Eligible subscriptions mean?

Subscriptions that are purchased on or after 01/04/2025 and have expiry dates on or after 01/04/2026, with auto-renew turned off, will automatically transition into a paid Extended Service Term (EST) at the end of the term (renewal date by default).

What exactly happens on the 4th of May 2026?

From 04/05/2026, customers will no longer have grace periods for subscriptions that are not renewed or are cancelled.

What are the available end of term renewal options?

Partners have three renewal options available when managing subscription renewals: Renew the subscription, Cancel the subscription, or move the subscription to EST.

How does EST affect the NCE 7-day change/cancellation grace period?

• Subscriptions set to Auto Renew: There is no change to the 7-day grace period.
• Subscriptions set for Cancellation: The 7-day grace period is not applicable. Services are cancelled immediately.
• Subscriptions moving to EST: The 7-day grace period is not applicable. EST subscriptions can be cancelled or renewed at any time.

When can I change the renewal options 

Renewal options can be changed anytime. However, we recommend updating your preferences at least 2 days before the term ends. 

How long can a subscription remain in EST

Subscriptions remain in EST indefinitely until cancelled or renewed.

How do I exit from EST?

EST subscriptions can be renewed or cancelled at any time. You will only be charged up to the date of renewal or cancellation.

Are EST Services invoices on the same SKU?

No. Microsoft has introduced new ESTspecific SKU codes for all CSP offers. While the Subscription ID remains the same, EST charges are invoiced under these new SKU codes and appear as separate invoices in PRISM

How do I check if subscriptions are moving to EST

The Manage Renewal screen facilitates the identification of relevant renewal options, including EST. The PRISM team is currently developing an EST Renewal report; in the interim, please contact your Crayon account manager for assistance regarding impacted customer subscriptions.

How do I manage end customer objections 

EST is a Microsoft initiative applicable to all customers who purchase through a channel partner. For further information, please reach out to your Crayon Account Manager.

How are EST subscriptions billed and invoiced in PRISM?

EST subscriptions are billed similarly to your monthly billed subscriptions. You will receive a separate invoice, billed in arrears, for your extended service SKUs.

Where can I find and download my EST invoices?

Invoices for EST subscriptions are available to view and download from the Invoices page within PRISM.

Is EST management available via PRISM APIs:

PRISM APIs have been enhanced to enable comprehensive management of EST options. For additional details, please contact Technical Support or your Account Manager.