Benefits of GoDaddy Defederation to a Direct Microsoft 365 Tenant

GoDaddy’s Microsoft 365 offering provides a convenient starting point for many businesses. It simplifies setup and bundles essential services, making it easy to get up and running. But as organizations grow, so do their requirements for control, security, and scalability. 

Defederation is the process of transitioning from a GoDaddy-managed Microsoft 365 tenant to a fully independent Microsoft tenant. It is not data migration. Mailboxes, files, and user accounts remain in place. What changes is how the environment is managed and what becomes possible once full administrative access is restored. 

Capabilities Available After GoDaddy Defederation

Full Administrative Control 

Defederation gives you direct access to Microsoft’s native admin center. This unlocks the ability to: 

• Manage users, roles, and permissions without third-party constraints 
• Configure advanced security and compliance policies 
• Implement conditional access, MFA, and identity governance 
• Access detailed reporting and audit logs 

This level of control is essential for organizations with growing complexity or regulatory requirements. 

Access to the Full Microsoft 365 Feature Set

GoDaddy tenants are limited to a subset of Microsoft 365 capabilities. After defederation, you can enable:

• Microsoft Defender for Office 365 
• Intune for device and application management 
• Purview for compliance, data loss prevention, and information governance
• Azure AD Premium features for identity and access control 

These tools are critical for organizations looking to consolidate vendors, improve security posture, and streamline IT operations. 

Support for Microsoft Copilot and AI Tools

Microsoft Copilot is only available in fully licensed Microsoft tenants. Once defederated, you can: 

• Deploy Copilot across Teams, Outlook, Word, and Excel 
• Use Copilot Chat and Search to surface insights from internal data 
• Explore Copilot Studio and build custom AI agents for internal workflows 

This enables meaningful productivity gains and more intelligent use of organizational knowledge. 

Flexible Licensing Options 

GoDaddy offers a limited set of Microsoft 365 SKUs. After defederation, you can choose from the full Microsoft catalog, including: 

• Frontline Worker licenses for staff who do not require full productivity suites
• Enterprise SKUs with advanced security and compliance features 
• Add-ons such as audio conferencing, Power BI, and more 

This flexibility allows you to align licensing with actual usage and optimize costs. 

Seamless Integration with the Microsoft Ecosystem 

A full Microsoft tenant integrates more deeply with services across the Microsoft cloud, including: 

• Azure Virtual Desktop 
• Dynamics 365 
• Power Platform 
• Microsoft Entra 

These integrations create a more unified IT environment by connecting core services across the Microsoft ecosystem, making it easier to scale, manage, and secure your infrastructure as your organization grows. 

A Foundation for Long-Term IT Strategy

Defederation removes the limitations of a simplified management layer and gives your team the tools to plan and grow without constraint. You can: 

• Implement layered security and compliance frameworks 
• Consolidate tools and reduce operational overhead 
• Align your roadmap with Microsoft’s innovation pipeline 

It is a shift from short-term convenience to long-term flexibility and control. 

Partnering with Sourcepass MCOE for GoDaddy Defederation

Defederation is a straightforward process with meaningful long-term benefits. It provides the control, flexibility, and access needed to support a secure, scalable Microsoft 365 environment. 

If you're considering the move, the team at Sourcepass MCOE is here to help you evaluate your options and guide you through the transition with clarity and confidence. Chat with one of our specialists today!