Break Free from GoDaddy: Defederate to Microsoft 365 the Smart Way
Stop struggling with GoDaddy Microsoft 365. Learn how defederation gives you full control—no migration needed.
How I Helped a Small Business Break Free from GoDaddy Without Migrating
A few months ago, I received a frantic message from a small business owner—we’ll call her Sarah. She’d signed up for Microsoft 365 through GoDaddy, thinking it was a shortcut to professional email and productivity. But now, she was stuck.
“I can’t even access the full admin center. Everything routes through GoDaddy. I want out—but I can’t afford a full migration.”
This is the exact moment where defederation becomes a game-changer.
The Trap of GoDaddy Microsoft 365
When businesses purchase Microsoft 365 through GoDaddy, they unknowingly give GoDaddy control over their tenant. That means limited admin access, licensing headaches, and a brick wall when trying to scale.
What Sarah needed wasn’t a complicated migration with downtime and data loss.
She needed defederation.
What Is Defederation?
Defederation is the process of removing GoDaddy’s control over your Microsoft 365 tenant and bringing it directly under Microsoft—without changing accounts, emails, or user data.
Here’s the high-level overview:
Disconnect GoDaddy via hidden Microsoft admin tools
Remove federation using Microsoft Graph PowerShell
Reset user passwords to regain login access
Reassign licenses directly from Microsoft or your preferred CSP
Cancel GoDaddy (safely—this part is key)
Sarah couldn’t believe it was possible without a painful migration.
Step-by-Step: Defederate Without Disrupting Your Team
1. Prepare Your Team
Pick a quiet time (usually after hours) to notify users of the change. You’ll reset passwords and may need to guide them through a simple login update.
2. Get Admin Access
By logging into the hidden Azure portal (portal.azure.com), you can access the true Global Admin account and reset its password.
3. Use Microsoft Graph to Remove Federation
With a few PowerShell commands, we convert the tenant’s domain from “federated” to “managed.” This unlocks full Microsoft 365 capabilities.
Update-MgDomain -DomainId “yourdomain.com” -Authentication Managed
<#
.SYNOPSIS
Domain Authentication & Graph Connection Script
.DESCRIPTION
This PowerShell script connects to Microsoft Graph using the required scopes,
checks and installs the required Microsoft Graph module, and updates domain authentication.
Intended for tenant admin use in Microsoft 365 environments.
.AUTHOR
Ahmed Masoud
Microsoft 365 Consultant | PowerShell | SharePoint | Automation | Power Platform
.LINK
Written by: Ahmed Masoud
Website: bio.link/ahmedmasoud
LinkedIn: linkedin.com/in/ahmed-masoud-ms365
.CHANGELOG
V1.00, 04/04/2025 - Initial version
#>
# Conenction
Set-ExecutionPolicy RemoteSigned
Install-Module -name Microsoft.Graph.Identity.DirectoryManagement
Import-Module Microsoft.Graph.Identity.DirectoryManagement
# Description: This script is used to generate the user details for all the packs
# Script
Write-Host "Checking for MSGraph module..."
$Module = Get-Module -Name "Microsoft.Graph.Identity.DirectoryManagement" -ListAvailable
if ($Module -eq $null) {
Write-Host "MSGraph module not found, installing MSGraph"
Install-Module -name Microsoft.Graph.Identity.DirectoryManagement
}
Connect-MgGraph -Scopes "Directory.Read.All","Domain.Read.All","Domain.ReadWrite.All","Directory.AccessAsUser.All"
#Enter the Admin credentials from "Become a tenant Admin in GoDaddy"
Update-MgDomain -DomainId domain.com -Authentication Managed
#See that the domain is “federated”#
Get-MgDomain
##################################################
# Disconnect-MgGraph
Disconnect-MgGraph
4. Reassign Licensing
You’ll purchase new licenses (GoDaddy licenses can’t be moved). I recommend:
Business Standard or Premium directly from Microsoft
Shared mailboxes to save cost where possible
5. Clean Exit from GoDaddy
Before you cancel:
Remove GoDaddy’s delegated admin role
Ensure all users and domains are fully transitioned
Then, cancel the GoDaddy subscription safely
Skipping this can trigger a deletion script—don’t risk it.
Credit to: Defederating GoDaddy 365 | Tminus365 Docs
The Result? Full Control, Zero Downtime
Sarah’s defederation was a success.
No email interruptions
No lost data
And no more GoDaddy control
She now enjoys full access to Microsoft 365’s security tools, Teams integration, and future scalability.
Want to Do the Same?
I’ve helped dozens of businesses like Sarah’s regain control over their Microsoft 365 environments. The process is precise—but powerful. And here’s the best part:
💡 You don’t have to migrate.
I offer this as a service on my Fiverr gig—whether you’re a solo entrepreneur or a growing company, I tailor it to your setup.
If you’re unsure or want to see if your setup qualifies, book a free 15-minute consult call. I’ll walk you through it—no pressure.
Final Thoughts
GoDaddy’s bundled services may seem convenient at first, but they limit your freedom in the long run. Defederation is your path to ownership, clarity, and future-proof scaling.
🔄 Over to You:
Have you been stuck with GoDaddy’s Microsoft 365 setup? What’s been your biggest challenge so far?
👇 Drop a comment—I’d love to hear your story and help if I can!
💬 If this guide helped, share it with your network—it could save someone else hours of frustration.
📞 Curious if defederation is right for you? Book a free 15-min call and let’s chat.
Meet Ahmed
Ahmed Masoud
Microsoft 365 Consultant specializing in Migration, Setup, Automation, and providing Dedicated, Ongoing Support to optimize your business operations.
