Software Assurance Upgrade

When your agreement becomes due, you have until the end of the month to renew through your license provider. You then enter a grace period of 30 or 90 days (depending on the type of volume licensing agreement you hold), during which you can renew without interrupting your Software Assurance coverage.If you do not contact your license provider and renew prior to this date, your Software Assurance benefits will lapse, and you will be required to repurchase licenses, along with new Software Assurance coverage.
Back to your situation, if you are in the migration process to 2008, you may just want to terminate the benefit by let it expired. Unless your process may take another year, I don't see a reason to continue with the older policy.

K

Thanks Inkevin. They're not actually in the process of upgrading to 2008, and definitely will not be in the next 30 days. However, six months or a year down the road they may want to. It's not worth renewing the SA since it's not much price difference than just buying the upgrade. But the question is, can they exercise their right to upgrade now, but not actually install the upgrade for a year or so.