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I’ve helped quite a few clients in the exact same situation — and here’s the thing:
You don’t need to migrate or mess with PSTs or third-party tools at all.

Instead of treating GoDaddy as a separate email system, there’s a process called Defederation. It lets you safely remove GoDaddy’s control and bring the tenant fully under Microsoft’s management — no data loss, no downtime, and no need to rebuild anything.

✅ You’ll need to:

• Purchase new licenses directly from Microsoft (GoDaddy ones aren’t transferable)

• Disconnect GoDaddy’s federation

• Update DNS & security settings

• Optionally update your SharePoint URL

But the result? A clean, native Microsoft 365 tenant with full admin access and no GoDaddy limitations.

I put together a quick guide and video for exactly this situation if it helps you or your techs:
▶️ Walkthrough video
📝 Full blog post

Happy to answer questions if you run into anything tricky.

– Ahmed Masoud
🔗 LinkedIn