The Pitfalls of Using Separate Microsoft 365 Tenants for External Sharing

The Pitfalls of Using Separate Microsoft 365 Tenants for External Sharing

Microsoft 365 has become the cornerstone for many businesses in terms of productivity tools and collaboration platforms. A growing trend among some enterprises has been to set up a separate Microsoft 365 tenant purely for external sharing and collaboration. While this may seem like a strategic move to segregate internal and external operations, it comes with its set of challenges.

Complications of a Separate Tenant

  1. Management Overload: Having two Microsoft 365 tenants translates to double the administrative duties. Think of it as managing two entirely separate businesses. From user licenses to mail routing and data governance, everything has to be handled distinctly for each tenant.
  2. Elevated Costs: Two tenants mean two sets of licenses. Even if there are features overlapping between the two environments, you'd still be paying twice for them.
  3. Syncing Nightmares: Regular data synchronization between the tenants is necessary to maintain data integrity. This adds complexity, especially if there's an error or conflict during the sync.
  4. User Confusion: Employees interacting with both environments often find themselves juggling between two different user accounts, passwords, and interfaces, leading to confusion and reduced productivity.
  5. Compliance and Reporting Hurdles: Ensuring regulatory compliance for one Microsoft 365 tenant can be challenging enough. With two tenants, you're looking at double the effort to maintain compliance standards, perform audits, and generate comprehensive reports.
  6. Security Concerns: More environments mean more potential vulnerabilities. The need to maintain security protocols, access controls, and threat detection mechanisms across both tenants can be taxing and can potentially open up security gaps.

The Power of Consolidation with eShare

eShare brings a paradigm shift in how enterprises approach Microsoft 365 collaboration:

  1. Unified Collaboration Space: eShare allows businesses to maintain a single Microsoft 365 tenant for both internal and external collaborations, ensuring a consistent and streamlined user experience.
  2. Optimized Costs: By consolidating into one tenant, you can better optimize license utilization, ensuring you only pay for what you truly need.
  3. Enhanced Security: With eShare's robust security features tailored for Microsoft 365, you can ensure top-notch security without the need for separate environments.
  4. Seamless Compliance: Achieve and maintain regulatory compliance more effortlessly with consolidated data, uniform policies, and integrated reporting tools.


Setting up a dedicated Microsoft 365 tenant for external sharing might seem like a solution to keep data and interactions compartmentalized. However, the complications arising from this approach can be daunting. Consolidation, powered by platforms like eShare, offers a more efficient, cost-effective, and secure alternative.

Embrace the future of collaboration with eShare, and streamline your Microsoft 365 experience.


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Mike Parrella

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