Welcome to this month’s Microsoft Licensing Update. This edition covers important changes to CSP, the launch of Microsoft 365 E7 and Agent 365, and several other updates you’ll want to be aware of before key deadlines hit.

Cloud Solution Provider (CSP) transition to Extended Service Term

Effective 1 April 2026, Microsoft has made an important change to how expiring CSP licenses are handled. The previous 30-day grace period, which allowed customers time to renew without service interruption, has been discontinued and replaced with an Extended Service Term.

A subscription will automatically move into Extended Service Term when auto-renewal is disabled and no renewal order has been placed before the expiration date. This ensures continuity of service, but at a higher cost: pricing is based on the monthly rate (approximately 20% more than the annual equivalent), plus an additional 3% uplift.

The Extended Service Term is flexible. It can be cancelled at any time, and charges are billed on a pro-rated basis.

Microsoft 365 E7: The Next Era of the Intelligent Workplace (May 1st)

After years as Microsoft’s flagship enterprise offering, Microsoft 365 E5 is set to be succeeded by something more ambitious. On 1 May 2026, Microsoft will introduce Microsoft 365 E7: a license built around AI as a core capability, not an add-on.

E7 includes everything in E5, while adding Microsoft 365 Copilot, the Entra Suite, and Agent 365. Together, these bring a new model of working: one where AI agents don’t just assist individual users, but act across the organization handling tasks, automating workflows, and operating within a governed, secure platform designed to scale.

This is Microsoft’s clearest signal yet that the future of enterprise software isn’t about feature expansion. It’s about AI becoming part of how work actually gets done. E7 is designed for organizations ready to move beyond pilots and make AI a consistent, organization-wide capability.

General Availability of Agent 365

In addition to being included in the Microsoft 365 E7 license, Agent 365 will also be available as a standalone license starting May 1, 2026.

Agent 365 provides full visibility into all managed agents within the environment, enabling organizations to act quickly on performance, behaviour, and risk signals such as potential data oversharing.

Dynamics Sales Premium Capacity Update

Starting 15 April 2026, the included capacity for Dynamics Sales Premium will increase:

• Default Database capacity increases from 30 GB to 45 GB
• Database capacity accrued per user license doubles from 250 MB to 500 MB
• Default File capacity increases from 40 GB to 60 GB

Product Terms Updates

Updates for SQL & Windows Server Subscriptions

For SQL and Windows Server subscriptions purchased via MCA, the use rights are now equivalent to the rights provided to products that have Software Assurance included.

Windows 10 Enterprise LTSB

End of Support and Extended Security Updates

Windows 10 Enterprise LTSB will reach end of support in October 2026. Organizations still running this version can purchase Extended Security Updates (ESU) for up to three years to maintain security coverage beyond that date.

ESU pricing follows the same structure as the standard Windows 10 ESU licenses (available since October 2025) and doubles each year:

Year 1 – From October 2026 > €65,-

Year 2 – From October 2027 > €130,-

Year 3 – From October 2028 > €260,-

Organizations should factor this escalating cost into their planning and consider whether migrating to Windows 11 may be more cost-effective in the long run.

Azure Limited Access Services

Azure Limited Access Services have been updated to include Guardrails for High-Risk Content. This adds an additional layer of control over how sensitive AI capabilities can be accessed and used.

Updated Language Microsoft Teams

Microsoft Teams shares notifications when recording or transcription functionalities are activated. This can be disabled, however the responsibility and liability about informing the attendees lies with the customer.

Reminder: Microsoft 365 Price & Suite Updates (1 July 2026)

With 1 July 2026 approaching, now is the time to act if you haven’t already.

Since February, Microsoft has been offering reduced euro pricing following foreign exchange rate adjustments. These lower prices are only guaranteed until 30 June 2026. After which list prices will increase and new functionality will be added across Microsoft 365 and Office 365 suites.

What this means for you: Starting a new subscription before 1 July 2026 lets you lock in today’s lower pricing for as long as possible, while still benefitting from the upcoming suite upgrades when they roll out.

The window is closing. Contact us to review your current licenses before the deadline.

CSP Promo Calendar

Windows 365

• With this promo customers new to Windows 365 receive 20 % discount on all W365 editions
• Duration: Until 30 April 2026

Three-year subscription for M365 E3 and M365 E5

• A 10% discount is available if you are willing to commit to M365 E3 or M365 E5 for three years.
• Minimum quantity is 100 seats.
• Duration: Until 30 June 2026

New M365 E5 customer – Annual term

• Customers new to M365 E5 can benefit from a 15 % discount for a subscription of one year.
• Duration: Until 30 June 2026

Getting started with Microsoft 365 E7

Accelerate with Microsoft 365 E7

• If you are planning a broader roll out of Microsoft 365 E7 (minimum 100 licenses), Microsoft offers a 15 % discount for an annual or a triennial subscription.
• Duration: 1 May 2026 until 31 December 2026

Microsoft 365 Business Premium with Copilot Business

• The bundle Microsoft 365 Business Premium with Copilot Business is a available with a 25 % discount if you purchase at least 10 subscriptions.
• Duration: Until 30 June 2026

Copilot promos

Getting started with Copilot

• New to Copilot? Organizations purchasing 10 or more licenses for the first time can take advantage of a 15% introductory discount.
• Minimum quantity: 10 licenses
• Duration: Until 30 June 2026

Scale up with Copilot

• Already using Copilot and willing to grow? Microsoft has a scale up promo available offering a 20% discount.
• Minimum quantity: 100 licenses
• Duration: Until 30 June 2026

Copilot for all

• Planning to roll out Copilot to all your users? Microsoft offers a 30 % discount (even 40% in specific cases) if you are rolling out Copilot to at least 80 % of your M365 E3 and E5 users.
• Minimum quantity: 300 licenses
• Duration: Until 30 June 2026

Microsoft 365 Copilot Business

• Are you a Business customer? Microsoft offers Copilot for Business with a 15 % discount.
• Maximum quantity: 300 licenses
• Duration: Until 30 June 2026

Three-year promo for Microsoft 365 Purview and Defender Suite

• If you are an M365 E3 customer looking to invest in the security and compliance portfolio, Microsoft offers a 10 % discount on the three-year commitment.
• Minimum quantity: 100 licenses
• Duration: Until 30 June 2026