Use case: Use this procedure to create a cloud-only user account with no mailbox. Cloud-only users are managed entirely in the cloud and are typically used for administrative accounts, applications, or service accounts that don’t need any email services.
To create a new Entra ID user account, do the following:
- Right-click the User folder under your tenant and select New → User.
- Select Cloud user (no mailbox) from the User Type dropdown.
- Fill out the Display Name, then click Next.
- Fill out the UserPrincipalName, then click Next.
- Modify any user settings according to your needs by navigating the tabs on the left-hand side.
- Click Create to start the user creation process.
ID:KB_053_HowToCreateAnEntraIdUserAccount