Hi @Siva Sakala ,
Thanks for your post! Azure AD tenants have a defined limit for directory objects, which includes service principals, users, groups, and applications. In a free tenant, a maximum of 50,000 Azure AD resources can be created by default.
If you add a verified domain to your tenant, the per-tenant object limit is raised to 300,000. If you want to go above that quota, you can contact Microsoft support and have the limit raised by providing a justification. In the free version of Azure AD, you can get the quota raised to 500,000. If you have Azure AD Premium P1 or P2, you can get the limit raised above 500,000 by reaching out to support and providing a justification.
The limits are defined here and you can read more details in the article: https://learn.microsoft.com/en-us/azure/active-directory/enterprise-users/directory-service-limits-restrictions
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