Updates to the Microsoft Product Terms

Universal License Terms

Microsoft has adjusted the 30-day grace period text. Extended Term is now default on this page, stating that if Online Services are not renewed at the end of their subscription term, access will continue for 30 days and may extend month-to-month until cancelled (the “Extended Term”).

Microsoft may charge for this period at the current monthly rate plus a 3% uplift for certain products, but will offer customers the option to opt out before expiration—either by enabling automatic renewal or requesting immediate disablement. Once disabled, the subscription cannot be reactivated, though customers will have 90 days to extract their data. The Extended Term has already been implemented in EA, but is now available cross-program.

The biggest change here is that there seems to be no overlap any more if you cancel your licenses or Extended Term. It states licenses will immediately be removed. I hope this means that you get the correct counts in your portal immediately upon for instance your contract renewal.

Exchange Server

The page on Exchange Server was updated to allow for the new Exchange Server subscriptions. This is the latest and newest version of Exchange Server (see more below).

Skype for Business Server

The page was updated to allow for the new Skype for Business Server subscriptions. This is the latest and newest version of Skype for Business Server (see more below).

Microsoft Azure

New clause for Grounding with Bing Search. This is a feature within the Azure AI Foundry Agent Service that enables AI agents to incorporate real-time public web data into their responses by leveraging Bing Search APIs. When you use this feature withing AI Foundry, you will be billed for this as a First-Party Consumption Service, though the terms are governed by this website.

Microsoft 365

Windows 365 was added in the Microsoft 365 – Unattended License clause to be an option for running an Unattended Bot license.

Microsoft Defender for Experts

Microsoft updated the EES, EA, EAS and License prerequisite table. They also added the Microsoft Customer Agreement table for Microsoft Defender for Experts Hunting XDR, and Experts for XDR. What this means is that the product set is now diversified, as you are able to buy this through the Azure Service as well.

CAL and ML Equivalency License

This table received an update with the release of the new Exchange and Skype for Business Server licenses. If you’re unaware of this resource, it’s a way to understand how online services provide parity with on-premises software. If you’re interested in this great resource, you can find it here.

Microsoft to Enforce D365 F&O Licensing from November 1, 2025

Starting November 1, 2025, Microsoft will enforce strict licensing for Dynamics 365 Finance & Operations, ending the previous honor system. A soft block with warnings begins on September 1, followed by a hard block that locks out unlicensed users in November.

This affects all D365 F&O modules, and misconfigured security roles could lead to costly license gaps, access issues, and audit risks.

Organizations should urgently review their security roles, run license assessments, and clean up outdated assignments. Microsoft’s tools (like the Power Platform Admin Center and new security reports) can help, but discrepancies are common. Immediate action is crucial to avoid business disruption.

Read the full update on Dynamics 365 F&O License Enforcement here.

Need help?

Don’t wait until it’s too late. LicenseQ can help you assess your current Dynamics 365 F&O license usage, identify compliance gaps, and right-size your environment before enforcement hits.

Get in touch with our Microsoft licensing experts today for a free consultation and stay ahead of Microsoft’s November 1 deadline.

Other Licensing Updates

• There won’t be a currency correction for Commercial Cloud and On-premises software. Unlike previous quarters, where Microsoft adjusted the pricelists (mainly upwards) for foreign currencies, they are not making these changes now. This raises some eyebrows in the community, as it seems the USD is quite favorable to other EA pricelists. Knowing this, try and benefit from the USD pricelist if you can.
• Microsoft announced the general availability of the Subscription Editions of Exchange Server and Skype for Business Server, which are the successors to the 2019 editions From a licensing perspective they follow the same rules as for SharePoint Server SE. You need active Software Assurance to use the product – or buy the subscription licences – and if the SA lapses, then you retain rights to the 2019 version of the product.
• Limited Extended Security Update program for Exchange 2016/2019 and Skype for Business Server 2015/2019 announced. It will just last six months and ends on 14th of October 2025. So if you’re still migrating, this might be for you