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Based on your description and the error message, this issue occurs when the mailbox being migrated does not have the Cross-tenant User Data Migration (UDM) license assigned in either the source or target tenant. This license is mandatory to perform mailbox migrations between Microsoft 365 tenants. For more detailed information, you can refer to this official Microsoft article: Cross-tenant mailbox migration - Microsoft 365 Enterprise | Microsoft Learn (This article also mentions the same error message you encountered).
In your situation, the migration was initiated from a CDX tenant, which is a non-commercial demo environment provided by Microsoft for internal testing and product demonstrations. These tenants come with limited licensing and commerce capabilities, which can affect certain operations like license-based migrations.
Add-ons like the Cross-tenant User Data Migration license may not be available for purchase or assignment if the tenant doesn’t have an active billing profile. This profile is necessary to process license-related transactions. Without it, the migration operation fails due to missing license validation. For further clarification, Microsoft’s CDX guidance outlines this requirement.
Additionally, Microsoft requires a specific license to perform Cross-Tenant Mailbox Migration. This can include licenses such as Exchange Online Plan 1 or 2, Microsoft 365 E3/E5, or Business Standard/Premium essentially, any plan that includes Exchange Online mailbox services.
Just a quick note: for the migration to work properly, both the source and target accounts should be licensed mailboxes, not simply disabled accounts or mail-enabled users. While using a CDX account is acceptable for initiating migrations, it doesn’t bypass the licensing requirements.
I hope this information is helpful. If you need any additional details, please don’t hesitate to reach out.
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