Support for Microsoft Extended Service Term (EST)

^{Major Upgrade}

Starting May 4, 2026, Microsoft is introducing a new subscription lifecycle option called the Extended Service Term (EST). When a partner schedules a cancellation for an existing Microsoft NCE subscription, the subscription can transition to EST at the end of the contract term. Cancellation can also be scheduled so the subscription transitions to a higher-priced monthly offer with anytime cancellation. This gives partners and their customers flexibility to maintain access to services while deciding their next steps, without being locked into a new annual or multi-year commitment.

In this release, we have implemented full support for EST within the marketplace platform. Partners can schedule EST transitions through their existing subscription update flows, manage EST subscriptions, upgrade out of EST to paid editions, or cancel EST subscriptions at any time without restrictions.

Benefits for partners and customers

• Billing alignment: Without EST support on the marketplace, subscriptions you schedule for cancellation can still transition to EST in Microsoft, so what customers see in AppDirect may not match what Microsoft bills. This release keeps the marketplace and Microsoft in sync.
• Gradual transition: After the committed term ends, customers can remain on month-to-month access while they evaluate alternatives or plan their next move.
• No lock-in on EST: EST subscriptions can be cancelled at any time (no 7-day cancellation window). Partners can upgrade back to a full paid edition and adjust seat counts in the same action.
• Prorated billing: EST is billed monthly and prorated, so mid-month cancels or upgrades charge only for days used if so configured.
• Microsoft compliance: The model is mandated by Microsoft effective May 4, 2026; partners using AppDirect for Microsoft subscriptions are compliant from day one.

Feature enablement

This feature is not enabled by default. Contact your AppDirect technical representative to request it.

Setting enablement

No setting enablement is required.

Documentation

Documentation will be updated with the release.