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I am trying to work with synchronizing users into Office 365. What I cannot figure out is what is the difference between a federated user and a regular user. I see there is a cmdlet to convert a federated user to a regular user (Convert-MsolFederatedUser) but I cannot quite figure out what is different?

I am interested in:

  • The data needed to provide for each case, in creating the user.
  • What the consequences of being a user of each type might be.
  • License differences?
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