February 2026: Licensing & Product Updates
Licensing & Product Updates
Stay informed on important Microsoft licensing, enforcement, and product lifecycle changes that may impact your organization.
Microsoft Ending Free Post-Expiry Grace Period
Effective April 1, 2026
Microsoft will discontinue the free grace period that previously allowed continued access after a license-based subscription expired without renewal.
After expiration, customers must either:
- Renew
- Cancel at expiration (access stops immediately)
- Move into a paid Extended Service Term (EST) to maintain services
Contact your Account Manager to discuss your options.
Teams “Shared Devices” Renamed to “Teams Shared Space License”
Effective April 1, 2026
Microsoft is renaming the Teams Shared Devices license to Teams Shared Space License to better reflect how organizations license shared desks, rooms, and common spaces.
Contact your Account Manager to learn how this may impact your environment.
Dynamics 365 Finance & Operations: License Validation Begins
Rolling Enforcement Starting January 15, 2026
Microsoft will begin enforcing per-user license validation for Dynamics 365 Finance & Operations applications as customers reach their renewal or anniversary dates after January 15, 2026.
This phased rollout is designed to reduce disruption while ensuring compliance.
Contact your Account Manager to review your compliance standing.
Power Apps Update: Per App User SL Ends for New Customers
Effective January 2, 2026
The Power Apps per app User Subscription License (User SL) is no longer available for purchase by new customers.
Contact your Account Manager to understand how this change may affect your licensing strategy.
Security Copilot Included with Microsoft 365 E5
Effective January 1, 2026
Microsoft Security Copilot is now included with Microsoft 365 E5 subscriptions, along with a monthly allocation of Security Compute Units (SCUs).
Schedule time with your Account Manager to review your entitlements and activation options.
Automated Windows Server Licensing Enforcement with Azure Arc + Azure Policy
Microsoft introduced an automated approach to enforce Windows Server licensing across hybrid environments using Azure Arc and Azure Policy. The published policy evaluates Arc-enabled Windows Server machines for license status and automatically deploys the appropriate Software Assurance (SA) or Pay-As-You-Go (PAYG) license profile when gaps are identified.
Connect with your Account Manager to evaluate your options and compliance posture.
BizTalk Server 2020 Is the Final Release
Modernization Path: Azure Logic Apps
Microsoft announced that BizTalk Server 2020 will be the final version of the product. Azure Logic Apps, as part of Azure Integration Services, is the strategic successor.
Key Dates
- Mainstream support ends: April 11, 2028
- Extended support ends: April 9–10, 2030
Recommended Next Steps
- Pause new BizTalk buildouts beyond break/fix
- Begin new integrations on Azure Logic Apps
- Inventory existing BizTalk assets and map them to Azure Integration Services
- Align modernization timelines with business stakeholders
Further reading:
EWS Access Blocked for Kiosk & Frontline Licenses
Enforcement by End of June 2026
Exchange Web Services (EWS) access will be blocked for mailboxes licensed only with:
- Exchange Online Kiosk
- Microsoft 365 / Office 365 F1
- Microsoft 365 / Office 365 F3
Requests will return HTTP 403 after enforcement begins.
Action Required
- Audit applications and integrations using EWS with these licenses
- Relicense impacted users (e.g., Exchange Online Plan 1/2, Microsoft 365 E3/E5)
- Or migrate integrations to Microsoft Graph
Current Promotions
Review active Microsoft promotions that may provide cost savings across compliance, security, and cloud migration initiatives.
Microsoft Extends 50% Discount on Microsoft Purview Suite for Copilot Customers
Now through June 30, 2026 .
Microsoft has extended its 50% discount on the Microsoft Purview Suite (formerly E5 Compliance) for customers licensed with Microsoft 365 Copilot. The promotion is now available through June 30, 2026.
Contact your Account Manager to determine eligibility and review next steps.
Bridge to Cloud 3: 30% Off Dynamics 365 When Moving from On-Premises
Effective January 1, 2026
Microsoft launched Bridge to Cloud 3 (BTC3), a migration promotion designed to help eligible commercial Dynamics on-premises customers transition to Dynamics 365 online.
Qualified customers can receive a 30% discount when purchasing a fixed, non-cancellable three-year subscription through CSP (NCE, partner-led).
Contact your Account Manager to confirm eligibility and evaluate migration options.
10% CSP Promotion Extended for Microsoft 365 Suites
Now through June 30, 2026
Microsoft has extended several CSP new commerce promotions, including a 10% discount on:
- Microsoft 365 E3
- Microsoft 365 E5 three-year subscriptions
- Microsoft 365 Security add-on suites (Purview Suite and Defender Suite)
The promotion runs through June 30, 2026.
Contact your Account Manager to review qualification requirements and optimize your licensing strategy.