Skip to content
TECH CEO Daily
SaaSAnalysis

Microsoft deadlines hit IT budgets as Windows 10 support doubles to $122 per device

Three Microsoft changes land at once: a doubled Windows 10 support fee, a hard April 2027 cutoff for Exchange Web Services and a new default for settings backup.

By · Editor

· 3 min read · Fact-checked

The 60-second brief

  • 1Windows 10 Extended Security Updates rise from $61 to $122 per commercial device in year two, then $244 in year three.
  • 2Microsoft began disabling Exchange Web Services in Exchange Online on October 1; it retires April 1, 2027, with no exceptions.
  • 3Windows 11 26H2 turns on settings backup by default for Entra-joined devices unless admins have set the policy.

The news

Microsoft (MSFT) is pushing three separate deadlines onto corporate IT teams this fall. The price of keeping Windows 10 patched is doubling, Exchange Web Services is being switched off in Exchange Online, and a Windows 11 update changes a default setting for managed devices.

The biggest cost item is Windows 10 Extended Security Updates (ESU), the paid program that keeps delivering security fixes after Windows 10 reached end of support on October 14, 2025. According to The Register, commercial customers paid $61 per device for the first year, which ends in October 2026. The second year costs $122 per device and the third, and last, year costs $244. Windows 365 users are exempt from ESU costs, the outlet reported.

Many companies are still running the old system. Statcounter data cited by The Register put Windows 11 at 71.5% of Windows desktop usage and Windows 10 at 27.77%. Esben Dochy, principal technology evangelist at asset-management firm Lansweeper, told The Register that the doubled second-year price makes the business case for replacing lingering machines "a lot easier."

The second deadline affects software integrations. Exchange Web Services (EWS) is an older programming interface that lets apps read and write mailboxes, calendars and contacts. The Register reported that on October 1, 2026, Microsoft began disabling EWS in Exchange Online tenants in phases, and that the service will be permanently retired on April 1, 2027, with no exceptions. On-premises Exchange Server is not affected. Admins can temporarily re-enable EWS and allow specific apps, but only until the April date.

Microsoft is steering developers to Microsoft Graph, its newer API, though the company has acknowledged that some capability gaps remain, The Register reported. Microsoft said EWS no longer meets today's security, scale and reliability requirements, according to the outlet.

The third change is smaller but touches policy. BleepingComputer reported that after the release of Windows 11 version 26H2 on September 29, 2026, Windows settings backup is enabled by default for devices that are Microsoft Entra-joined or Entra hybrid-joined. The default applies only where admins have not configured the policy, and excludes regions covered by the EU Digital Markets Act and sovereign or restricted clouds. Restore stays off unless admins turn it on.

The numbers

Windows 10 ESU, year 1
$61 per device
Windows 10 ESU, year 2
$122 per device
Windows 10 ESU, year 3
$244 per device
Windows 10 share (Statcounter)
27.77%
EWS final retirement
April 1, 2027

Why CEOs should care

For CFOs, the ESU math is now simple to run. A company with 1,000 Windows 10 machines would pay $122,000 for year two and $244,000 for year three at the list prices The Register reported (our calculation). Compare that against the cost of replacing or upgrading those devices, and ask IT for a dated plan to retire each remaining Windows 10 machine rather than renewing by default.

For CIOs and application owners, EWS is the deadline most likely to cause surprises. The Register noted that organizations may first learn of forgotten integrations through failed workflows and help-desk tickets. Ask vendors of CRM, archiving, scheduling and backup tools whether they still call EWS, and get written Graph migration dates. Because Microsoft says some Graph gaps remain, test the specific mailbox and calendar functions your business relies on before the April 1, 2027 cutoff.

For CISOs and compliance teams, the settings backup default is a policy question, not a crisis. If your organization has not set the policy, Windows 11 26H2 devices will start backing up settings automatically. Decide whether that matches your data-handling rules, and set the policy explicitly in Intune or Group Policy so the outcome is a choice rather than a default.

The bigger picture

Taken together, the changes show Microsoft using pricing and hard cutoffs to move customers off older platforms. The doubling ESU schedule raises the cost of waiting each year, and the EWS retirement, announced in 2023 after feature development stopped in 2018, ends a decades-old interface that dates back to Exchange Server 2007, according to The Register.

Lansweeper's Dochy told The Register that the steepest part of the Windows 11 migration curve is likely behind the market, which suggests the remaining Windows 10 fleets are the hardest cases: specialized machines, older hardware and teams that have deferred the work.

What’s next

Watch for the end of the first ESU year in October 2026, when renewals at $122 per device come due, and for Microsoft's phased EWS blocking across tenants ahead of the April 1, 2027 retirement. Organizations that re-enable EWS temporarily should treat that as a short bridge, not a fix.

What “Fact-checked” means

Fact-checking means testing a story’s facts against the evidence before it is published. This story went through at least two separate checks before this version was published.

What we checked
Its names, figures, dates, job titles, quotes and who said what were checked against the story’s sources, including its main source where it could be opened. The headline was checked for accuracy and overstatement.
How
A first check reviewed the whole story. If it passed, a second, skeptical check went back to the sources to look for mistakes in the most important facts. If a check flagged the story, it was edited to fix the problems found, and a separate re-check then reviewed the whole story again.
Who
The checks are made by our newsroom, as steps kept separate from the writing, under rules set by our editor, . A story the checks still flag is held for the editor, who decides whether it is fixed, published or dropped.
If something is wrong
“Fact-checked” does not mean error-free. If a material error is found after publication, we correct the story and add a note saying what changed. Report an error

How we fact-check →

Companies in this story

MicrosoftWindows 10Exchange OnlineIT budgets

Earlier coverage of Microsoft

All Microsoft coverage →

Written by

Editor · Technology & Business Writer

Hussein is a writer and business technology enthusiast focused on the intersection of technology, entrepreneurship, finance, artificial intelligence, and digital innovation.

CoversAICybersecurityBig TechSaaSStartupsFintech

About this story. Researched from primary sources whenever they are available and fact-checked before publication.

Published by Tech CEO Daily, an independent publication. Masthead · Editorial standards

Follow Tech CEO Daily on Facebook for the day’s top stories in your feed.

Free newsletters

The technology briefing for people running businesses.

Daily, weekly, bi-weekly or monthly. You choose.

How often

The Daily Brief · Monday to Saturday, 7 a.m. ET

Free forever. One click to unsubscribe. We never sell your email.