That's a shitty way to do it. The better way would be to give them a two year notice, with the discount. By the end, most people would probably have upgraded.
"By the end, most people would probably have upgraded.".
Or switched to a different product. IoT products shouldn't depend on the cloud -- or they should explicitly indicate a certain number of years of support based on the purchase date (so the customer knows what they're signing up for)