| Changes to free grace period policy and new extended service terms coming in April 2026 Effective April 1, 2026, the free grace period for accessing services on non-renewed subscriptions will be discontinued. Instead, you can offer customers an extended service term (EST)—a flexible option that keeps services running without requiring a full subscription commitment. Eligibility Subscriptions that meet all three of the following conditions will automatically be transitioned into extended service term at expiration: - Purchased on or after April 1, 2025, and
- Expires on or after April 1, 2026, and
- Auto-renew is set to off.
Subscriptions purchased before April 1, 2025, will not be affected. What’s changing? Today, after a subscription expires, you can: - Renew the subscription (with or without changes).
- Turn auto-renew off, which triggers a grace period of free service for a limited time.
Starting April 1, 2026, you and your customers can instead: - Renew to a new term (with or without changes).
- Cancel at end of term. Services end immediately.
- Move to EST to continue service, billed monthly at the current monthly term price plus a 3% uplift (or 23% if no monthly plan exists).
Flexibility with EST Once a subscription moves into EST, you can: - Stay in EST, renewing monthly.
- Cancel the EST subscription at any point and receive a prorated refund credit.
- Convert to a standard paid subscription (with or without changes) at any point and receive a prorated refund credit.
The extended service term applies to license-based services across all channels—Cloud Solution Provider (CSP), Microsoft Customer Agreement – Enterprise (MCA-E), and Buy-Online—in all markets and for all term lengths (monthly, annual, triennial). When auto-renew is turned off and an eligible subscription expires, it will automatically move into EST. Supported scenarios include Commercial, Public Sector in CSP, specialized offers, and end-of-sale SKUs. EST does not apply to software subscriptions, perpetual software, Azure Reservations, third-party offers, or Azure Savings Plans. Call to action You can prepare customers now by discussing available options in advance of their subscription ending to ensure they have time to choose from the following options: renewing their subscription, canceling it at the end of the term, or converting it to a paid EST. Partners can view a list of subscriptions with their renewal status via Partner Center Insights (UI and API). Key dates Partners should plan and prepare for changes to existing API and UI functionalities to align with the updated subscription renewal options. Technical documentation will be updated as key features release. The expected timeline is as follows: - Currently live: Renewal status column added to Subscriptions dashboard in Partner Center Insights.
- November 3, 2025: Test, manage, and schedule renewal options (renew to a new term, cancel at end of term, renew to EST) for net-new subscriptions (purchased after November 3, 2025) in sandbox.
- January 19, 2026: Manage and schedule renewal options (renew to a new term, cancel at end of term, renew to EST) for all eligible subscriptions in sandbox and production. For subscriptions expiring after April 1, 2026, partners can opt out of EST.
- January 19, 2026: Subscriptions dashboard updated to show new renewal options (auto-renew, EST, cancel) for eligible subscriptions.
- February 1, 2026: EST SKUs available in price list preview.
- April 1, 2026: Eligible subscriptions convert to EST at expiration if auto-renew is off or “Renew to EST” is selected. Subscriptions purchased after April 1, 2025, will no longer convert to grace period.
Additional resources: New resources available to prepare for Partner of Record changes coming December 1, 2025 To make it easier for distributors to assign active, compliant resellers as Partner of Record (POR) for new subscription orders, we're updating the Partner Location Account (PLA) API and UI in Partner Center. These updates—originally planned for September 1, 2025—will now go live on December 1, 2025, giving you more time to prepare. Starting December 1, both the API and UI will validate reseller compliance with program terms for new subscription orders as well as changes to existing subscriptions. The following changes to an existing order (does not apply to subscriptions utilizing auto-renew) will be subject to the POR validation: - Seat count adjustments
- Billing plan updates
- Term modifications
- Partner-to-partner (P2P) transfers
- Migrations from legacy to new commerce
We have created new readiness resources to ensure you are prepared for the changes. Be sure to leverage the following documents to avoid delays in processing orders on December 1: Join the next Partner Operations Q&A call on October 23, 2025 To help CSP partners stay ahead of upcoming changes, the Microsoft Business Operations team hosts monthly Partner Community Q&A calls. With important deadlines coming soon, such as Partner of Record changes for indirect resellers on December 1, these sessions are designed to help you stay informed, get answers, and access resources. The next Q&A call will be on October 23, 2025, at 8:00 AM Pacific Time. Register in advance to secure your spot for the live session or listen to the session on demand. The reimagined Microsoft Marketplace experience is here Microsoft Marketplace is now the trusted destination for AI apps, tools, and agents—built to connect solutions with customers faster. You’ll find new catalog experiences, a smoother process for publishing agents, built-in co-sell opportunities, and expanded discoverability across Microsoft products and storefronts. - Package offers: Combine your services with co-sell eligible solutions from Microsoft Marketplace.
- Find demand: Tap into distributor programs and Microsoft Marketplace discoverability to reach the right buyers.
- Simplify deals: Use aligned motions to reduce friction and keep transactions secure and compliant.
What’s next? Explore how the new Microsoft Marketplace experience can help you reach more customers faster and more effectively than ever before. Read the blog to get started. Ignite the way to an AI-first future Join us November 18–21 for Microsoft Ignite—online or in person. This is your chance to hear directly from Microsoft leaders and get a front-row seat to the latest in AI, infrastructure, security, and partner innovation. This year’s highlights include: Seats are going fast—especially for in-person experiences. Register now and select the partner program as your primary focus to unlock exclusive content. Boost your sales effectiveness with Microsoft Defender Suite training Learn how to drive better sales conversations and accelerate deals with the Microsoft Defender Suite (previously known as Microsoft 365 E5 Security) by joining us for one of our upcoming Level Up CSP trainings. This session will help you grow your business by giving you: - A deeper understanding of Microsoft Security licensing.
- Go-to-market resources, demos, and skilling paths.
- Current promotions and incentives.
- A live Q&A to get actionable guidance from Microsoft Security sales experts.
Dates and times - October 29 | 9:00–10:30 AM Pacific Time
- October 30
- 9:00–10:30 AM India Standard Time
- 9:00–10:30 AM British Daylight Time
Register today. Now available: Microsoft Dragon Copilot partner bootcamp Resources and presentations from the Microsoft Dragon Copilot partner bootcamp (US) are now available on the Dragon Copilot partner assets page. Find out how you can offer greater value to your healthcare customers with this AI-powered assistant offering––designed specifically for healthcare professionals—with a range of easy-to-use informative assets: - Bootcamp presentations
- Keynote
- Partner go-to-market opportunity
- Technical training
- Co-selling overview
- Skilling for customer success
- Dragon Copilot messaging and positioning framework
- Dragon Copilot pitch deck, infographic, and datasheet
- Partner FAQ
Please note that access to Partner Center tools, support assets, and resources requires valid Partner One ID credentials. This includes authentication for viewing gated content, submitting updates, and accessing resources within Partner Center. Microsoft 365 E5 15% off promotion extended through December 31, 2025 We are extending this year's Microsoft 365 E5 15% off promotion through December 31, 2025, to help you continue to drive upsell conversations with new customers—and ultimately close more deals with this powerful, best-in-class productivity solution. For more details, review the global promo readiness guide and FAQ. Microsoft 365 E5 mini-suites renamed to Microsoft Defender Suite and Microsoft Purview Suite As of October 1, 2025, Microsoft renamed its Microsoft 365 E5 mini-suites: - Microsoft 365 E5 Security is now called the Microsoft Defender Suite.
- Microsoft 365 E5 Compliance is now called the Microsoft Purview Suite.
These two advanced security suites enable you and your customers to effectively handle external cyberthreats and internal data risks through a single, integrated solution—improving both security and efficiency—and this name change reflects that. Be sure to update your marketing materials to drive more impactful customer conversations. How to support customers with the Microsoft Sentinel 50GB commitment tier promotion As a CSP partner, you’re well positioned to drive adoption of Microsoft Sentinel among small and medium enterprise customers, and now you can offer them even more value with the 50GB commitment tier. The new tier will be available in public preview with promotional pricing from October 1, 2025, through March 31, 2026. Customers who purchase during this window will lock in pricing until March 31, 2027. With this new tier and promotion, you can: - Get up to 32%* off the pay-as-you-go (PAYG) price with the Microsoft Sentinel 50GB commitment tier promotion.
- Position Microsoft Sentinel competitively against other SIEM/SOAR solutions.
- Drive adoption with customers who have lower ingestion volumes, such as small and medium enterprises, with the promotional price.
- Drive urgency with the six-month promotion sign-up (customers who sign up between October 1, 2025, and March 31, 2026, will lock in their price through March 31, 2027).
Note: This promotion is valid for new and existing Sentinel customers. Next actions: The 50GB promotional tier is available in all regions where Microsoft Sentinel is sold. The promotion can be used with existing or new purchases of Microsoft Sentinel. The promotion may not be combined with other Microsoft Sentinel discounts. *Maximum discount available is region dependent. Upcoming API and technical changes To help you stay ahead of security and compliance requirements, we are making technical and API changes in Partner Center, including multifactor authentication and Microsoft Customer Agreement (MCA) attestation. These changes will also help you reduce risk and avoid disruption to your operations and customer transactions—all while improving the partner experience so you can drive efficiency and grow your business. Read our latest blog post for a complete overview of all upcoming changes, and share this information with your technical teams so they can prepare for these updates. January 15, 2026: Final deadline to retire any code using graph.windows.net audience tokens As part of a broader effort to strengthen security across Partner Center services, graph.windows.net audience tokens will now retire on January 15, 2026. All services using the Azure Active Directory Graph API will migrate to api.partnercenter.microsoft.com. If your organization uses the generateToken API, you’ll need to stop decoding the token in the API response and remove dependencies on any claims returned in the token. The new version of the generateToken API is now available, so you can begin using it today. Reminder: Updated CSP authorization requirements now in effect As of October 1, 2025, updated CSP authorization eligibility requirements are in effect. Ensure your organization is compliant by reviewing the authorization requirements. Next actions: - Download the partner FAQ for more information.
- Work with your distributor to ensure you’re meeting the requirements.
Process update: How to request MAF and certification letters As of October 1, 2025, we have updated our process for issuing manufacturer’s authorization form (MAF) letters and standard partner certification letters and will no longer issue them based solely on Microsoft AI Cloud Partner Program membership, which on its own does not provide authorization to transact. Resellers should contact their distributor to request MAF and certification letters through them, as they can provide transaction confirmation. How to support customers with the Microsoft Entra ID Free subscription rollout Equip your customers to stay protected and maintain reliable access to their environments with the upcoming Microsoft Entra ID Free subscription rollout—part of the Secure Future Initiative (SFI) and our continued commitment to stronger security. No action is required from you or customers, but by being aware of the change, you can support them and answer any questions they may have. After the rollout: - The subscription will appear in the Microsoft 365 Admin Center and Azure portal under their billing account.
- We anticipate this change taking effect from late 2025 to early 2026 on a rolling basis.
- It cannot be modified or deleted while the customer remains active.
- Customers will receive direct communication from Microsoft regarding this subscription rollout.
If your customers need further guidance, refer them to Microsoft support or the official Learn documentation. |
