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License & Subscription Issues

How to End a Microsoft Partner Relationship and Move Licenses In-House

Tauseeq MagsiTauseeq Magsi Oct 12, 2026 869 views

Question details

The user needs to terminate their Microsoft licensing agreement with a managed service provider (MSP) and transition their software licenses to be managed in-house.

How to End a Microsoft Partner Relationship and Move Licenses In-House
Product
Microsoft 365
Device & OS
not provided
Scenario
Moving enterprise or business licensing away from a third-party managed service provider back to internal organizational management.
Observed behavior
Transferring billing and administration rights requires specific partner-management procedures rather than standard community support channels.
Before you start

Before initiating the transfer, ensure you have Global Administrator access to your Microsoft 365 tenant and a clear inventory of all currently active licenses managed by your partner.

Solution 1Recommended

Consult Microsoft Partner Center Support for License Transfer

Because changing a Microsoft Partner relationship involves billing and administrative rights, it must be handled through specialized partner-management channels.

Terminating a relationship with a managed service provider (MSP) means transferring the billing and administration of your licenses back to your organization. This process requires precise steps to prevent downtime or accidental loss of user licenses.

1
Identify your current Partner

Log in to your Microsoft 365 admin center, go to 'Settings', and select 'Partner relationships' to view your current managed service provider details.

2
Remove Partner Admin Privileges

If necessary, select the partner and choose 'Remove roles' to revoke their Delegated Admin Privileges (DAP) from your tenant.

3
Contact Partner Center Q&A

For comprehensive guidance on officially changing the relationship status and moving licensing, visit the Microsoft Partner Center Q&A page (https://learn.microsoft.com/en-us/answers/tags/272/microsoft-partner-center).

4
Purchase In-House Licenses

Before the partner cancels the current subscriptions, ensure you have purchased the equivalent licenses directly from Microsoft via the Billing section in the admin center to avoid service interruption.

Consult Microsoft Partner Center Support for License Transfer
Important Subscription Note: Always procure your in-house licenses before your MSP revokes the existing ones. If licenses lapse, user accounts may lose access to their emails and files.
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Frequently Asked Questions

Will removing a Microsoft partner delete my user data?

No, removing a partner's administrative privileges or ending the relationship does not delete your tenant's data. However, you must ensure you have active replacement licenses to maintain access to your services.

Can I remove a Microsoft partner without their permission?

Yes, if you have Global Administrator rights in your Microsoft 365 tenant, you can remove a partner's Delegated Admin Privileges (DAP) at any time through the Microsoft 365 admin center.

What happens to my subscriptions when I end the partner relationship?

If the partner was providing your licenses via the Cloud Solution Provider (CSP) program, they remain responsible for billing until they cancel the subscriptions. You must purchase direct licenses before they cancel to prevent service disruptions.

Why can't community support help with Microsoft partner issues?

Partner relationships involve confidential billing information and administrative rights. Due to privacy and security policies, these issues must be handled exclusively through specialized Microsoft Partner Center channels.