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During an ongoing Office 365 deployment, we identified an issue with Office 365 customers not being able to change a user’s UPN if both UPN’s are in federated domains. We have identified and validated a work-around, please see the guidance below. Thanks to Marcus Hass and Dmitry Kazantsev for the write-up.
Therefore for us to provide customers with UPN rename functionality we will have to engineer some sort of the provisioning process that will provide two-step rename via a standard (non-federated domain). The steps below illustrate such process with a use-case scenario with the fictitious company Contoso. We will assume that Contoso has a default standard (non-federated) domain of contoso.onmicrosoft.com and contoso1.com and contoso2.com both of which are federated domains, and that Contoso is running Directory Sync: