In the realm of Microsoft Entra ID and Microsoft 365, the concept of a multitenant organization plays a pivotal role in facilitating streamlined collaboration across different entities within an organization. But what exactly does it entail, and how can it benefit your organization? Let’s delve into the details.
What is a Multitenant Organization in Microsoft Entra ID?
A multitenant organization is a feature inherent to Microsoft Entra ID and Microsoft 365, enabling the creation of a tenant group within your organization. This group consists of pairs of tenants governed by cross-tenant access settings, facilitating B2B collaboration and cross-tenant synchronization.
Why use Multitenant Organization?
The primary objectives of a multitenant organization include: Defining a group of tenants belonging to your organization. Facilitating collaboration across these tenants in platforms like Microsoft Teams. Enabling seamless search and discovery of user profiles across multiple tenants via Microsoft 365 people search.
Who should use it?
Multitenant organization is particularly beneficial for organizations owning multiple Microsoft Entra tenants and seeking to streamline cross-tenant collaboration within Microsoft 365.
How does it work?
The lifecycle of a multitenant organization involves three key stages:
- Defining a multitenant organization.
- Joining the multitenant organization.
- Leaving the multitenant organization.
During this process, administrators maintain control over their respective tenants, ensuring a collaborative yet independent environment.
Benefits of Multitenant Organization
The advantages of utilizing a multitenant organization include:
- Differential treatment of in-organization and out-of-organization external users.
- Enhanced collaborative experience in Microsoft Teams.
- Improved people search functionality across tenants within Microsoft 365 services.
Constraints and limits
While offering significant benefits, multitenant organizations come with certain constraints and limits, including restrictions on the number of active tenants and the requirement for cross-tenant access settings.
License requirements
The multitenant organization capability requires Microsoft Entra ID P1 licenses. Only one Microsoft Entra ID P1 license is required per employee per multitenant organization. Also, you must have at least one Microsoft Entra ID P1 license per tenant.
In conclusion, understanding and leveraging multitenant organizations in Microsoft Entra ID can significantly enhance collaboration and efficiency within your organization. By harnessing this feature, you can unlock new avenues for cross-tenant cooperation and streamline your workflow across Microsoft 365 platforms.
Source: What is a multitenant organization in Microsoft Entra ID? – Microsoft Entra ID | Microsoft Learn