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Tenant Migration

How to Move Microsoft 365 from 123 Reg to Direct Billing

John WilsonJohn Wilson Sep 30, 2026 869 views

Question details

The user wants to migrate their Microsoft 365 Business Basic tenant from 123 Reg to Microsoft direct billing to regain control after experiencing extended email service outages.

How to Move Microsoft 365 from 123 Reg to Microsoft Direct Billing
Product
Microsoft 365 Business Basic
Device & OS
not provided
Scenario
Migrating a federated Microsoft 365 business tenant from a third-party reseller (123 Reg) to a directly managed Microsoft account.
Observed behavior
Users are locked out of their email for days with the error 'AADSTS50107: The requested federation realm object does not exist'. OneDrive remains accessible, but email service is entirely blocked.
Before you start

Before attempting to migrate your tenant, ensure you have global administrator access to your Microsoft 365 environment and back up all critical emails and OneDrive files locally to prevent data loss during the transition.

Solution 1Recommended

Request Defederation from 123 Reg

Since 123 Reg controls the federated authentication configuration, you must contact them to defederate your tenant before migrating to direct billing.

Third-party providers like 123 Reg and GoDaddy sell Microsoft 365 packages through a federated authentication system. The AADSTS50107 error indicates that the federation realm object does not exist in their Single Sign-On (SSO) configuration.

A Microsoft 365 business tenant cannot simply be converted into a personal Office subscription. The federation must be removed first.

1
Contact Support

Reach out to 123 Reg customer support and report the specific AADSTS50107 error preventing email access.

2
Request Tenant Defederation

Explicitly ask their technical team to defederate your Microsoft 365 tenant and remove the SSO federation realm.

3
Migrate to Direct Billing

Ask for their support in transitioning your tenant over to Microsoft direct billing, ensuring your domain and DNS records are updated accordingly.

Request Defederation from 123 Reg
Expert Assistance Recommended: Because the domain, tenant configuration, user mailboxes, and DNS records are intricately involved, it is highly advisable to use a qualified Microsoft 365 administrator to manage this migration.
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Frequently Asked Questions

What does the AADSTS50107 error mean in Microsoft 365?

This error occurs when the requested federation realm object does not exist. It typically happens with third-party Microsoft 365 resellers like 123 Reg or GoDaddy when their Single Sign-On (SSO) configuration fails, blocking user access to services like email.

Can I convert a Microsoft 365 Business tenant to a personal account?

No, you cannot directly convert a Microsoft 365 Business tenant into a personal Office subscription. You must either defederate the domain and migrate your business data, or purchase a separate personal subscription and manually transfer your files.

How long does a tenant defederation and migration take?

Depending on the provider's responsiveness and the complexity of your DNS records and mailboxes, the process can take anywhere from a few hours to several days. Engaging an IT expert can help expedite the transition and minimize business downtime.