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nick_Anag's avatar
nick_Anag
Iron Contributor
Apr 10, 2025
Solved

Updated MPA - Extended Term & Opt Out Explanation

Dear community,

We are an Indirect Provider in CSP and we have been reviewing the updated version of the MPA that is available for review in Partner Center.

As we were reading it, we saw a new clause. more specifically clause 8 (g) in page 43 that describes that and I quote "Extended Term for Expiring Subscriptions. If a Software Subscription or seat-based OLS Subscription is not renewed at the end of the subscription term, access to the applicable Software or OLS will continue following expiration for 30 days and may continue thereafter for successive one-month periods until cancelled (“Extended Term”). Microsoft reserves the right to invoice Company for the Extended Term at the then-current published price for a monthly subscription plus a three (3) percent uplift. If it does, Microsoft will provide Company with an opportunity to opt out of the Extended Term prior to the expiration date and request instead that the applicable Subscription either be renewed automatically or disabled immediately upon expiration. Company will have 90 days to extract Customer Data from a disabled account, but the Subscription cannot be reactivated."

Following the above new clause, could please help us understand the following two questions:

  1. Does the "Extended Term" as described above include the 30 first days after the expiration of a subscription or not?
  2. Could you please enlighten us on the way that this "opt out opportunity" will be systematically implemented? How will we be able to utilize this opportunity for our partners/indirect resellers?

Kindly asking for your significant help on these points as it is critical for our business decisions to avoid unforeseen costs for our partners.

Thank you in advance,
Nick

  • I have a response from the team: 

     

    • Microsoft periodically updates language in our partner agreements, including the CSP Program Guide.  On March 27,2025, notice was given for an upcoming update in the CSP Program Guide to include terms to reserve the right to charge for services provided after subscription expiration until cancellation. This is not notice of enforcement.

     

    • Microsoft understands the importance of such changes to your business operations and will provide partners with at least 6 months advance notice of such enforcement. Comprehensive details will be provided to partners in advance to facilitate any required changes.

     

    • Please continue to refer to your standard communication channels for future updates.
  • I have a response from the team: 

     

    • Microsoft periodically updates language in our partner agreements, including the CSP Program Guide.  On March 27,2025, notice was given for an upcoming update in the CSP Program Guide to include terms to reserve the right to charge for services provided after subscription expiration until cancellation. This is not notice of enforcement.

     

    • Microsoft understands the importance of such changes to your business operations and will provide partners with at least 6 months advance notice of such enforcement. Comprehensive details will be provided to partners in advance to facilitate any required changes.

     

    • Please continue to refer to your standard communication channels for future updates.
    • Michael_Stevens's avatar
      Michael_Stevens
      Copper Contributor

      How  will leverage work with  this new  requirement changes in subscription.  Can you extent subscription to take advantage of leverage. 

      • JillArmourMicrosoft's avatar
        JillArmourMicrosoft
        Icon for Community Manager rankCommunity Manager

        Their response: 

         

        Microsoft understands the importance of such changes to your business operations and will provide partners with at least 6 months advance notice of such enforcement. Comprehensive details will be provided to partners in advance to facilitate any required changes.

  • DCN1981's avatar
    DCN1981
    Copper Contributor

    Following..... as I would also like to understand the explanation from Microsoft on this point. We are also an Indirect Provider and we have raised this question internally too, needing clarification. Thanks

  • And from when will this take effect?
    April 27 or October 04.
    Both dates are in play in the Partner Center announcements !?

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