End of the grace period in Microsoft subscriptions: what changes?

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How the end of Microsoft’s grace period affects your subscriptions

Until now, many companies relied—sometimes without realizing it—on the Microsoft grace period. If a subscription expired or wasn’t renewed on time, there was a safety margin: for a few weeks the service continued to operate.

That has changed.

With the end of the Microsoft grace period, when a subscription is not renewed, access to the services is no longer automatically guaranteed. Within a few weeks, companies must actively decide what to do when a subscription reaches its expiration.

In this article we explain, in a clear and practical way, what this change means, who it affects, and how to avoid interruptions or data loss.

What was Microsoft’s grace period?

The grace period was an additional window after a subscription expired during which:

  • The user still had access
  • The data remained available
  • There was time to resolve administrative or payment issues

In practice, many companies became used to renewing late without immediate consequences.

With the end of Microsoft’s grace period, that no longer exists.

What changes now with the end of the grace period

When a subscription reaches its expiration date and is not renewed, the company must choose one of these three options:

1. Renew the subscription

Everything continues as usual: active services, intact data, and no impact on users.

2. Cancel the subscription

The subscription ends and:

  • Users lose access
  • Applications stop working
  • Data enters a temporary retention phase

3. Activate an Extended Service Term (EST)

This is a paid period that allows continued use of the service even if the regular subscription has not been renewed.

It’s important to understand that the EST is not a gift or a free extension: it is a billed service.

Why this change is critical for companies

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Many small businesses face situations like these:

  • Manual renewals
  • Licenses dependent on budgets approved late
  • Billing centralized in a single person

Previously, the grace period acted as a safety net. Now, a subscription that expires can cause a real business outage.

Real example

If a Microsoft 365 subscription expires → Outlook, Teams, and OneDrive stop working

This is no longer a theoretical risk: it is a real operational risk.

What happens to the data if a subscription is canceled

Microsoft will keep the data for a limited time after cancellation. After that, it is permanently deleted.

This is why the end of Microsoft’s grace period also implies a greater risk of irreversible data loss.

How ABD helps you with the end of Microsoft’s grace period

ABD

The end of the Microsoft grace period marks a turning point: licenses are no longer an administrative formality but a critical component of operational continuity.

If your email, your ERP, or your infrastructure depend on Microsoft, you cannot afford a poorly managed expiration.

At ABD Consulting we work as a Microsoft partner so this change does not become a problem for your company.

We help you:

  • Audit all your Microsoft subscriptions
  • Detect expiration risks
  • Configure safe renewals
  • Design continuity strategies
  • Avoid interruptions and data loss

Do you want us to review your subscriptions and avoid risks? At ABD we help you turn this change into an opportunity for control, savings, and security.

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