Multi-Tenant Organization Capabilities in Microsoft Teams

As organizations grow and evolve, they often find themselves managing multiple Microsoft 365 tenants. This could be due to mergers, acquisitions, regulatory requirements, or the need for better segmentation across business units. However, operating across multiple tenants has traditionally led to challenges in communication and collaboration.

To address these challenges, Microsoft has introduced Multi-Tenant Organization (MTO) capabilities in Microsoft Teams. These new features streamline cross-tenant interactions, making it easier for employees to collaborate without switching accounts or facing unnecessary barriers.

Multi-Tenant Organization Capabilities in Microsoft 365

Before diving into Teams-specific features, it's essential to understand how MTO capabilities span across the Microsoft 365 ecosystem. These capabilities extend to:

• Microsoft 365 People Search – Find colleagues across different tenants seamlessly.
• Microsoft Teams – Enhanced collaboration features across tenants.
• Viva Engage – Foster engagement across tenant boundaries.
• Microsoft Defender XDR – Unified security management across multiple tenants.

To enable these features, organizations must configure MTO settings in the Microsoft 365 admin center or Microsoft Entra admin center.

License Requirements for MTO in Microsoft Teams

Organizations must meet the following licensing criteria to utilize MTO features effectively:

• Microsoft Entra ID P1 or above is required in all MTO tenants.
• Microsoft Teams licenses for users participating in cross-tenant collaboration.
• Microsoft Defender XDR licensing for unified security monitoring across tenants.
• Microsoft Viva Engage licenses for enhanced employee engagement.

Ensuring proper licensing is critical to unlocking the full potential of multi-tenant collaboration features.

Benefits of Multi-Tenant Organization Features in Teams

These new capabilities significantly improve cross-tenant collaboration in Teams, offering key benefits:

1. Seamless People Search

Users can now search for colleagues across tenants without duplicates. The system provides a single, accurate search result with the user’s home tenant clearly identified. This makes finding the right colleague easier and eliminates confusion.

2. Side-by-Side Multitasking

With the new Teams client, users can operate across multiple tenants in side-by-side windows. This allows them to:

• Participate in meetings or collaborate in another tenant.
• Continue messaging in their home tenant simultaneously.
• Receive real-time notifications from all tenants without switching manually.

3. Improved Chat and Calling Experience

Users can now maintain a single chat thread with colleagues across tenants. Previously, separate threads were created for the same person when they worked across different tenants. This update ensures conversations remain streamlined and continuous.

4. Enhanced Meeting Experience

MTO users can now enjoy full-featured meeting experiences across tenants, including:

• Seamless whiteboard collaboration.
• Access to all meeting content without switching accounts.
• A consistent experience similar to meetings within their home tenant.

5. Shared Channels for Cross-Tenant Collaboration

Microsoft Teams Connect allows organizations to collaborate across tenants using shared channels. This enables employees to:

• Chat, call, meet, and share files without switching tenants.
• Work as a single, extended team while remaining in their own Teams environment.
• Easily invite external stakeholders to collaborate.

Unlike other MTO features, shared channels do not require MTO configuration, but they can be leveraged to enhance cross-tenant collaboration.

Enabling Multi-Tenant Organization Capabilities in Teams

To activate MTO features in Microsoft Teams, administrators must:

1. Configure Multi-Tenant Organization settings in the Microsoft 365 admin center.
2. Complete cross-tenant user synchronization to ensure a seamless experience across all tenants.
3. Ensure employees use the new Teams client (available for Windows, macOS, iOS, and Android).
4. Ensure proper licensing is in place, including Microsoft Entra ID P1, Teams, and Defender XDR licenses.
5. No additional setup is required in Teams, as the new capabilities will be enabled automatically once the admin setup is complete.

You can find detailed steps by referring to this blog.

New Update: Additional Work Information in People Search

Microsoft has further enhanced MTO capabilities by displaying additional work details in people search results. Users will now see company and department names, making it easier to identify the right colleagues across multiple tenants.

Final Thoughts

Multi-Tenant Organization capabilities in Microsoft Teams mark a significant step toward seamless collaboration for organizations managing multiple tenants. These new features eliminate silos, streamline communication, and ensure a unified, secure, and efficient experience across tenant boundaries.

As more organizations embrace multi-tenant environments, these capabilities will become essential in maintaining productivity and engagement across global teams. If your organization operates multiple Microsoft 365 tenants, now is the time to explore these powerful enhancements!