Organizations should migrate to the new Microsoft 365 Backup billing policies

Microsoft has published a new Pay-as-you-go service in the Microsoft 365 admin center: Microsoft 365 Backup.

New Pay-as-you-go service: Microsoft 365 Backup

It’s a curious situation, since this service is not new. Microsoft 365 Backup has been GA since the end of July 2024. However, administrators who check the old configuration in Org Settings will now see a message to migrate to a new billing experience.

Start the migration to the new billing experience
Start the migration to the new billing experience

In a usual case, this is a one-click migration. Microsoft migrates the current backup configuration to the new Microsoft 365 Backup PAYG service.

Should be a one-click migration
Should be a one-click migration

In a usual case, not in my case. The migration returned an error.

We couldn’t migrate your billing policy. Please try again later.

Migration error
Migration error

Having followed the PAYG services for all these years, I quickly identified the root cause.
When configuring a new billing policy in the Microsoft 365 admin center, you cannot create two policies with the same Azure resource group. The system does not allow it. In my case, the SharePoint Agent PAYG configuration used the same resource group as the backup service, so the Microsoft 365 Backup migration process could not create a new billing policy in that RG.

A Microsoft 365 billing policy cannot use the same Azure resource group as another policy
A Microsoft 365 billing policy cannot use the same Azure resource group as another policy

From the history:
SharePoint Agent PAYG and Microsoft 365 Backup PAYG were previously both part of Microsoft Syntex (also known as SharePoint Premium); see my post from January 2025. In June 2025, Microsoft moved SharePoint Agent PAYG from Microsoft Syntex to Microsoft 365 PAYG, which can now produce the simulated conflict.

Read:  Pay-as-you-go billing for SharePoint Agents

Simply recreate the SharePoint Agents PAYG billing policy and connect it to another Azure resource group. The Azure RG cannot be updated after a billing policy has been created. The Microsoft 365 Backup migration will then work.

The migration service creates a new billing policy named “Service migration” and uses the previous Azure configuration that had the conflict. The policy name can be updated in the billing policy overview.

The old billing configuration was migrated
The old billing configuration was migrated

The new Microsoft 365 Backup billing service now supports departmental billing, which I simulated in another post.

Read:  Departmental Billing for Microsoft 365 Backup
New departmental billing for Microsoft 365 Backup
New departmental billing for Microsoft 365 Backup
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Tobias Asböck

Tobias is a Senior System Engineer with more than 10 years of professional experience with Microsoft 365 products such as SharePoint Online, SharePoint Premium, OneDrive for Business, Teams Collaboration, Entra ID, Information Protection, Universal Print, and Microsoft 365 Licensing. He also has 15+ years of experience planning, administering, and operating SharePoint Server environments. Tobias is a PowerShell Scripter with certifications for Microsoft 365 products. In his spare time, Tobias is busy with updates in the Microsoft 365 world or on the road with his road bike and other sports activities. If you have additional questions, please contact me via LinkedIn or [email protected].

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