CSP Partner Insights Series: Key Updates – November 2025

What You Need to Know About Microsoft’s Extended Service Terms and Pricing Changes

In this month’s update, we’re highlighting two important updates from Microsoft that will impact CSP partners: changes to subscription lifecycle management and upcoming adjustments to Microsoft 365 and Teams pricing and packaging.

1. Extended Service Terms for CSP Subscriptions

Beginning April 1, 2026, Microsoft will discontinue the free post-expiry grace period that previously allowed continued access to services after a subscription expired without renewal.

What happens when a subscription expires?

Partners and customers will now have three choices:

1. Renew the subscription for a new term
2. Cancel at the end of the term (services end immediately)
3. Move to an Extended Service Term (EST)

Important:

Starting April 1, 2026, any subscription that meets the following criteria will automatically transition into EST when it expires:

• Purchased on or after April 1, 2025
• Expires on or after April 1, 2026
• Has auto-renewal turned off

2. Updates to Microsoft 365 and Teams Pricing & Packaging

Effective November 1, 2025, Microsoft has rolled out changes to how Microsoft 365 and Teams products are packaged and priced.

What’s new?

• Microsoft has reintroduced Microsoft 365 and Office 365 Enterprise suites with Teams into General Availability (GA).
  • Partners can now purchase or transition customers to suites that include Teams
• To align pricing across the portfolio:
  • Prices for Enterprise and Business suites without Teams (e.g., Microsoft 365 F3/M3) have been reduced.
  • Pricing for the Teams Enterprise standalone product has been increased.

These adjustments are designed to simplify the portfolio and improve consistency with licensing costs.

Partner Updates

Stay up to date with all the latest Microsoft announcements by joining our next Partner Update webinar: 

📅 Wednesday, December 3, 2025

🕘 2:00 PM – 2:45 PM AEDT

👉 Register Now 

For more information or assistance, contact the Synnex CSP Team at csp@au.synnex-grp.com.