Software + Services – Online Services – Payment Rules


Online Services is designed to give you choice and flexibility, we have introduced monthly billing for the Open Value Program for Online Services as this is the feedback received from our customer base, all details below on flexible billing, auto-renewal and cancellation terms below

Anything not making sense, drop me a note

Online Services

Online Services “(OLS)” is a subscription-based offering of software with services that are delivered online.

Online Service Subscription Term

The initial purchase of a new OLS subscription will determine the services subscription term length for the particular service the customer purchased. You can choose to select either a one-year subscription term or a subscription that ends on the same date as your agreement term (“coterminous”). The one-year subscription term may not align to and may not expire on the effective end date of your agreement. If the one-year subscription terminates after the agreement term, you must have an active volume licensing agreement to order additional licenses or renew the service. If you make additional purchases of a service, the subscription term of the additional purchase must align with your existing subscription term for the same service. If pricing for additional orders of product or services is not addressed in your existing agreement, the price we charge the billing party-of-record for additional quantities of products or services already acquired during that subscription term will be the same price we charged at the initial purchase of such products or services.

Online Service Purchases and Auto-Renewal

You must have an active Volume Licensing agreement to order or renew OLS subscriptions in Volume Licensing. An OLS subscription is automatically renewed the day after its subscription term expires, unless you chose not to renew by

  1. opting out of auto-renewal 30 days before the subscription expires
  2. submitting a new order prior to the subscription expires.

Upon the auto-renewal, Microsoft will invoice the billing party-of-record for the number of expiring licenses with the same subscription term option if your initial agreement remains active. OLS subscriptions for government and academic will not be automatically renewed unless you chose the auto-renewal option. Prices are reset at renewal.

Managing Renewal and Auto-Renewal Status

You will receive renewal notices prior to the end of your OLS subscription terms. You can cancel your renewal or change an auto-renewal order by acting at least 30 days before the end of the subscription term. You can also change your renewal order by placing an order with the reseller 30 days prior to the subscription expiration. You may cancel a subscription renewal by providing 30 day advance written notice to Microsoft on a form that is available from the Microsoft reseller or at

If you have chosen not to auto-renew the OLS subscription, and you do not place a new order within 60 days after the end of the subscription term, the OLS subscription expires and the service is de-provisioned. All renewals of services start a new subscription term that begins on the first day of the next calendar month after the prior subscription term expires.

You may increase the OLS subscription commitment, but may not reduce the OLS subscription commitment during the term of their OLS Subscription, unless the agreements allow for such reduction. To ensure additional users are provisioned, you must place an order for every increase in subscription service.

Online Services Cancellation

Orders for an Online Service may be cancelled within thirty (30) days after the initial order of a service without penalty. This is not a TRIAL period, Refer to product-specific sections of this product list for additional cancellation terms that may exist.

Online Services Payment Term Options

Customers must pay for one-year OLS subscriptions at the beginning of the subscription term. Customers choosing the coterminous subscription terms have the two following payment options:

  1. First payment at the time of the order that covers the remainder of the current agreement year, with the remaining payments due on each anniversary of the agreement
  2. Full payment at the time of the order covering the entire term of the agreement.
  3. Additionally, Open Value customers may also choose a monthly payment option. For the monthly payment option, a participating billing party-of-record is automatically invoiced each month during the term of the subscription for the quantity of subscriptions the customer has ordered.

Pricing and payment terms for subscriptions acquired through resellers are determined by agreement between the customer and its reseller.  Despite anything to the contrary in their agreement, a customer must order an OLS subscription before the subscription is first used.

Customers with an Enterprise Agreement may not submit a true up order for additional subscription licenses.


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