New CSP and Migration

Question

Hello,

I was notified that the 3rd party Microsoft Partner we were using is no longer authorized and we need to either move to a new CSP or set up directly with Microsoft. I have not been able to find a CSP willing to handle our small amount of licenses. My question is, if I buy the exact same product in the Microsoft store and disconnect the unsupported licenses, will applying the new licenses to the user create any loss of data on the cloud or email?

Thank you

Answer 1

Hi @Randi,

Thank you for sharing the details of your situation. Based on what you’ve explained, I understand your concerns about your current CSP and the need to transition your licenses safely.

First and foremost, moving to a new CSP or purchasing licenses directly from Microsoft will not affect your existing cloud data, such as emails, OneDrive files, or Teams content. This is because your data is tied to your Microsoft 365 tenant, not to the reseller. Therefore, as long as the new licenses are applied to the same tenant, your users will continue to access their mailboxes, files, and services without disruption.

In practical terms, if you purchase the same SKU directly from Microsoft using the same tenant and admin account, you can follow a straightforward process:

• Purchase and activate the new subscription
• Assign the new licenses to your users
• Then unassign or allow the old partner-provided licenses to expire or be canceled

By doing this in order, users remain licensed at all times, which means there is typically no risk of mailbox or file loss. The key point here is to avoid any gap where a user temporarily loses access to Exchange Online or OneDrive.

However, there are a few important things to keep in mind. Most importantly, you should avoid canceling the old subscription before the new licenses are in place. When a subscription ends, it goes through several lifecycle stages (Active > Disabled > Deleted), and user access and data availability can change during each stage.

Additionally, if a user’s Exchange Online license is removed, their mailbox may become disconnected. While Microsoft generally retains this data for a limited period, commonly around 30 days, it may be permanently deleted afterward unless retention policies or legal holds are applied.

Similarly, for OneDrive, Microsoft states that when a user is deleted, their OneDrive data is retained for a configurable period. By default, this is often around 30 days, and the exact retention and deletion behavior is managed through SharePoint and OneDrive settings.

It’s also worth noting that canceling certain subscriptions can affect user access immediately, depending on the subscription type and the timing of the cancellation.

With that in mind, I recommend the following approach to ensure a smooth transition:

• Purchase and activate the new subscription directly from Microsoft in the same tenant.
• Assign the new licenses to all users.
• Confirm access to key services such as mailboxes, OneDrive, and Teams.
• Only after verification, unassign or cancel the old licenses or subscription.
• Ensure you are signing in with the same Global Admin account and tenant.
• Verify that the new SKU includes all required services (Exchange Online, OneDrive, Teams, etc.) to avoid any feature gaps.

For additional details, you may find these Microsoft resources helpful:

• What happens to my data and access when my Microsoft 365 for business subscription ends?
• Cancel your subscription in the Microsoft 365 admin center.
• OneDrive retention and deletion.
• Set the OneDrive retention for deleted users.

I hope this explanation makes the process clearer and helps you move forward with confidence. Please feel free to reach out if you have any further questions. I’ll be happy to help.

I look forward to your reply.

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Answer 2

If the same or equivalent Microsoft 365 offers are purchased and applied correctly, user data in the cloud (mailboxes, files, Teams data) is preserved and there’s no data loss, as long as timing and SKU alignment are handled properly.

Key points based on supported guidance:

1. Use equivalent offers and SKUs
   When moving from one channel (old CSP) to another (for example, buying direct from Microsoft or a new CSP), using the same or equivalent product SKUs avoids the need to reassign licenses and prevents data loss or disruption.
   • When the provisioning IDs (SKUs/part numbers) match, license reassignment is typically not required and user data remains intact.
2. Turn off auto-renew on the old subscriptions and align timing
   For subscriptions in the old channel:
   • Ensure auto-renew is turned off so they can expire naturally.
   • On the subscription end date, the state changes to Expired. The subscription then remains in an Expired grace period (typically 30 days) where users can still access files and services.
   • New subscriptions (whether via CSP or direct from Microsoft) should be purchased and applied within this grace period to avoid any risk of data loss.
3. No data loss if equivalent offers and license counts are maintained
   There is no data loss and no disruption to end users if all of the following are true:
   • The same offers as currently in use are provisioned (or the documented equivalent offers).
   • The number of licenses remains the same.
   • The offer is equivalent (same workload coverage and provisioning ID where applicable).
4. What happens if different SKUs are used
   If different SKUs are purchased (for example, moving from one plan to a non-equivalent plan):
   • Licenses may need to be reassigned to users.
   • If a discontinued offer is in use, an equivalent offer must be acquired to prevent data loss.
5. Channel (CSP vs direct) does not change where the data lives
   The tenant and data (mailboxes, SharePoint, OneDrive, Teams) stay in the same Microsoft 365 tenant. Changing from an unsupported CSP to direct purchase or another CSP changes who bills and manages licenses, not where the data is stored. As long as users remain licensed without a gap and with equivalent offers, their data remains available.

In practice, this means:

• Purchase the same/equivalent Microsoft 365 products for the same tenant.
• Ensure there is no unlicensed gap for users (ideally overlap or immediate switch).
• Then remove/let expire the old, unsupported licenses. Under these conditions, there should be no loss of email or cloud data.

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References:

• Move license-based customers from other channels, tenants, and partners to the Cloud Solution Provider (CSP) program
• Follow the manual path