Microsoft's new CSP renewal policies: what you need to know

Effective May 4, 2026, Microsoft will change how it handles CSP subscriptions at the end of their term. The previous 30-day grace period will be eliminated entirely. Instead, at the end of the term, each subscription will automatically be assigned to one of the three available options:

• Renewal 
• Cancel at end of term
• Extended Service Terms (EST) – a paid, daily extension of the service
  
   

Elimination of the grace period

Until now, services have remained active for 30 days after a subscription expired, even if no decision to renew was made. This grace period will be completely eliminated as of May 4, 2026.

Effective as of this date:

• Unless you take active steps to change your settings, your subscription will be handled exclusively in accordance with the selected end-of-term option. 
• There is no longer an automatic grace period.
  
   

End-of-Term Options in Detail

Renewal

The subscription is automatically renewed for a new term. The scope of features and billing model correspond to the defined contract type.

Use case:

Continued use of the service without changes is planned.

Cancellation (Cancel at Term End)

Upon cancellation, the service ends immediately upon expiration of the term. This differs significantly from previous behavior.

Key implications:

• Users lose all access to the service.
• For critical services such as email, this can lead to immediate functional limitations.
• Data is typically retained for 90 days, but cannot be restored to the original subscription. Subscription can’t be recovered or reactivated.

Use case: 
The service is definitely no longer needed.

Extended Service Terms (EST)

With EST, a subscription remains active on a daily basis, even after the regular term has expired.

Terms:

• Daily billing based on the monthly rate plus a 3% uplift. 
• If no monthly rate exists, the surcharge compared to the regular billing can be up to 23%.
• EST serves as a bridge option, e.g., when decisions or approvals are still pending.

The service must continue until a final renewal or termination scenario has been decided.

Settings in Marketplace and CloudIQ

SoftwareOne Marketplace

Current behavior remains unchanged:

• Automatic renewal ON → Renewal at the end of the term 
• Automatic renewal OFF → Termination at the end of the term 

Crayon CloudIQ

By default, CloudIQ uses EST as the end-of-term option.

Timeline updates:

• As of March 4, 2026, the new renewal options can be set directly within the platform. 
• As of March 18, 2026, the EST status is visible in the subscription overview and in export files. 
• A Bulk update tool allows you to set multiple subscriptions to “Cancel at end of term” simultaneously.

Recommended Actions Before May 4, 2026

Review subscriptions

• Identify the end dates of all CSP subscriptions
• Check the default behavior for each platform (Marketplace / CloudIQ).
  
   

Make a decision for each setting

• Renew if the service is still needed.
• Move to Extended Service Term (EST) if decisions are pending or budget/process clarifications are underway. 
• Cancel only if the service is definitely no longer needed.
  
   

Plan internal processes

• Define responsibilities for renewals.
• Bring forward budget and approval processes if necessary.
• Minimize risks of unplanned service interruptions.
  
   

Ensure internal communication

• Inform affected departments (e.g., IT Operations, Procurement, Finance).