Create a Microsoft 365 Tenant
This skill provides a comprehensive guide to creating and managing a Microsoft 365 tenant, highlighting the interconnectedness of Microsoft 365, Azure, and Entra ID within the Microsoft Cloud Platform. It covers the setup process, including tenant creation, licensing, and cost management strategies to avoid unexpected charges. The skill also discusses the importance of using the Microsoft 365 E5 developer subscription for testing environments and emphasizes the role of Azure as an infrastructure and platform service, supporting various applications and services within the Microsoft ecosystem.
Full skill from MS-102. Preview the training IT teams trust.
Updated
Skill 1 of 17 in MS-102
What you'll learn
- Explain how Azure, Entra ID, and Microsoft 365 nest within the Microsoft Cloud Platform
- Describe how creating a Microsoft 365 tenant automatically creates an Azure tenant that hosts Entra ID
- Choose a Microsoft 365 E5 license over Office 365 E5 to include Defender XDR, and add it from Billing in the admin center
- Configure an Azure budget with email alerts to monitor trial spending and avoid unexpected charges
- Track trial expiration dates and extend or end a Microsoft 365 trial before billing begins
- Explain the value of a pre-built fictional company environment for testing Purview and data loss prevention
Free 46-minute video lesson with a full transcript and knowledge checks. No account needed to watch.
Intro to the Microsoft Cloud
Microsoft 365 (M365) is the basis of the MS-102. However, it consists of several other related components and cloud umbrellas.
Knowledge Check
Which of the following components are part of the Microsoft Cloud Platform? (Choose three)
Select all that apply.
Create a Microsoft 365 Tenant
Now let's go about creating our actual tenant!
Knowledge Check
Which of the following are true about creating a Microsoft 365 tenant? (Choose three)
Select all that apply.
Obtaining a Microsoft 365 E5 License
Because the E5 license is the most feature-rich license, we'll obtain a free trial of this product. This provides many benefits that we'll need for the duration of this course, but of course, it is also the most expensive. I'll provide tips on controlling expenses both here as well as in other spots in this skill.
Knowledge Check
Which of the following statements about Microsoft 365 E5 licenses are true? (Choose three)
Select all that apply.
Budget Management
As powerful as M365/Azure is, it can also hit you with powerful charges if not managed properly. Let's take a look at how to manage this.
Microsoft also offers this video on their complex billing hierarchy. You do not need to know the details for the MS-102, however, it might be useful to know for practical reasons.
Knowledge Check
What is a recommended practice to manage unexpected charges when using Microsoft 365 and Azure?
Using Microsoft's Pre-Built Environment
I do also highly recommend, if possible, that you use the Microsoft 365 E5 developer subscription to stand up your own test environment. It has a pre-built company with in situ messages and configurations and free trials for anything you will need.
Knowledge Check
What is a recommended way to set up a test environment for Microsoft 365 with minimal expense and a pre-configured business environment?
Validation
Let's see what we've learned in this skill!
Knowledge Check
Which component serves as the identity provider within the Microsoft Cloud Platform, supporting both Azure and Microsoft 365?
Knowledge Check
What is the recommended approach for creating a Microsoft 365 tenant for learning purposes without affecting a production environment?
Knowledge Check
Which license is recommended for demonstrating all necessary features?
Frequently asked questions
What does the Create a Microsoft 365 Tenant lesson cover?
The lesson walks a team member through standing up a Microsoft 365 tenant for hands-on practice, including adding a Microsoft 365 E5 license from Billing in the admin center. It also covers setting an Azure budget with email alerts, tracking trial expiration dates, and using a pre-built fictional company environment for testing.
How does creating a Microsoft 365 tenant relate to Azure and Entra ID?
Creating a Microsoft 365 tenant automatically creates an Azure tenant, and that Azure tenant hosts Entra ID. The trainer uses a nesting-doll analogy to show how Azure, Entra ID, and Microsoft 365 fit inside one another within the Microsoft Cloud Platform, and notes that MS-102 work cannot be done without Azure.
Why choose a Microsoft 365 E5 license instead of Office 365 E5 for an MS-102 lab tenant?
The Microsoft 365 E5 license includes Defender XDR, which the course relies on, along with the traditional Office apps such as Word, Excel, and PowerPoint. The lesson shows how to add it through Billing and Your Products in the Microsoft 365 admin center.
How can an IT team avoid unexpected charges on a Microsoft 365 trial tenant?
The lesson shows how to configure an Azure budget with email alerts to monitor trial spending. It also stresses tracking the trial expiration date and deciding to extend or end the trial before billing begins, ideally with a reminder set a few days in advance.
Why use Microsoft's pre-built fictional company environment when practicing Microsoft 365 administration?
The pre-built environment comes with user accounts in Entra ID, sent emails, and existing Teams chats, so it behaves like a working organization. That gives admins a realistic place to test security measures such as Purview and data loss prevention.
How long is this lesson and how does it fit into the MS-102 course?
The lesson runs 46 minutes and is one part of a Microsoft 365 Certified: Administrator Expert (MS-102) course that totals about 16 hours per learner. Tenant creation is one of the MS-102 exam objectives, and the tenant built here supports later topics such as Entra ID, Purview, and Defender XDR.
Team training path
Turn this skill into assignable team training
This free skill is a preview of the courses your team can assign, track, and report on with CBT Nuggets.
Free training library
More free lessons in Microsoft 365
Microsoft 365
Introduction to Local and Cloud Concepts
Free lesson from Microsoft 365 Certified: Fundamentals (MS-900) · 50m
Microsoft 365
Datacenters: Local and Cloud
Free lesson from Microsoft 365 Certified: Copilot & Agent Administration Fundamentals (AB-900) · 53m
Microsoft 365
Intro To Microsoft Defender XDR
Free lesson from Microsoft Certified: Security Operations Analyst Associate (SC-200) · 46m
Microsoft 365
Discover AI Foundations for Business Leaders
Free lesson from Microsoft Certified: AI Transformation Leader (AB-731) · 45m
Microsoft 365
Fundamentals of Generative AI and Copilot
Free lesson from Microsoft Certified: AI Business Professional (AB-730) · 51m
$59
seat / mo, billed annually