Next Steps for Consolidating Our M365 and Azure Tenants

Hello,

Thank you for posting your query on Microsoft Q&A.

I understand that you want to merge both tenants to manage user identities from a single tenant. Here are two main approaches you can consider:

1.Tenant-to-Tenant Migration

a. Azure to Microsoft 365 Tenant Migration: This approach involves migrating complete Azure resources from one tenant to the other.

b. Microsoft 365 to Azure Tenant Migration: This process focuses on moving user mailboxes, SharePoint content, and OneDrive for Business data from the Microsoft 365 tenant to the Azure tenant using any third-party migration tool

Note:

1.Licenses cannot be transferred between tenants, so new licenses will be required in the target tenant.

2.Before migration, please do the assessment for same. For knowing the pros and cons.

For detailed information on merging Microsoft 365 and Azure tenants, please refer to the official Microsoft documentation: https://learn.microsoft.com/en-us/microsoft-365/enterprise/microsoft-365-tenant-to-tenant-migrations?view=o365-worldwide

2.Cross-Tenant Collaboration and Identity Federation

Instead of merging, you can set up cross-tenant collaboration and identity federation using Azure AD External Identities. This allows for shared access and collaboration without the need for a complete tenant merge.

pros:

·       Avoids full migration, reducing risk and complexity.

·       Allows seamless collaboration between tenants using tools like Teams and SharePoint.

·       Maintains existing identities and licenses, avoiding additional licensing costs.

cons:

·       Requires managing two separate tenants, which can increase administrative overhead.

·       Some services and integrations may not work fully across tenants.

·       Potential security and compliance challenges due to cross-tenant permissions.

You can select the option that which will be suitable for your requirements

I hope this information is helpful. Please feel free to reach out if you have any further questions.

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