License & Subscription Issues

How to Move Microsoft 365 Business Premium Users to a New License

Algirdas Jasaitis Oct 1, 2026 869 views

Question details

An organization needs to transfer users from a partner-managed Microsoft 365 Business Premium license to directly purchased licenses without losing data.

How to Move Microsoft 365 Business Premium Users to a New License

Product: Microsoft 365
Device & OS: not provided
Scenario: Migrating approximately 35 business licenses from an IT partner's management directly to Microsoft billing within the same tenant.
Observed behavior: The organization requires a smooth transition to the new licenses while preserving full access to Outlook emails, OneDrive files, and SharePoint data.

Before you start

Ensure you have purchased and activated the replacement Microsoft 365 subscriptions in your tenant before canceling or removing the existing IT partner-managed licenses.

Solution 1Recommended

Replace User Licenses in the Microsoft 365 Admin Center

Directly assign the newly purchased licenses to users before the old ones expire to ensure zero downtime and prevent data loss.

Because you are transferring from Business Premium to Business Premium in the same tenant, user data is generally preserved automatically.

It is highly recommended to perform this swap while the original licenses are still active so that the transition is seamless for the end users.

Access the Admin Center

Navigate to Active Users

On the left-hand navigation menu, click on 'Users' and then select 'Active users'.

Select the Users

Check the boxes next to the users whose licenses need to be updated. You can select multiple users at once for bulk changes.

Manage Product Licenses

Click on 'Manage product licenses' at the top of the user list, and choose the 'Replace' option.

Assign the New License

Select the newly purchased Business Premium licenses from the list and save the changes to apply the new licenses to the selected users.

Replace User Licenses in the Microsoft 365 Admin Center

Precautionary Backup: Although equivalent license transfers do not typically cause data loss, it is a best practice to have users export their Outlook email to a PST file and download critical OneDrive/SharePoint files first.

Solution 2

Request Support for Subscription Transition

Use this method if you cannot access the admin center or need billing transition assistance from Microsoft.

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Frequently Asked Questions

Will users lose their Outlook or OneDrive data when switching licenses?

If the replacement subscription includes the same or more services (such as moving from Business Premium to Business Premium) within the same Microsoft 365 tenant, user data is preserved automatically.

Do I need to cancel the old partner licenses before assigning the new ones?

No. You must purchase and assign the new direct licenses using the 'Replace' function in the admin center before the old partner-managed licenses are canceled. This prevents any service interruptions or potential data loss.

Who has permission to replace user licenses in Microsoft 365?

Only administrators assigned the Global, License, or User admin roles can modify and assign product licenses in the Microsoft 365 admin center.

Can I update multiple user licenses at the same time?

Yes. In the Microsoft 365 admin center, you can select multiple users from the Active users list and use the 'Manage product licenses' feature to replace licenses for a batch of users simultaneously.

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