What is an Environment?

Each Workspace has exactly one Environment. It uses the Workspace settings, such as connected apps, users, storage accounts, and Azure datacenter.

Different organizations should be separated into their own workspaces.

An environment can only be connected to one Microsoft 365 tenant.

To govern multiple tenants of the same organization (e.g. for different regions, test, or production), each tenant needs its own Workspace. To segment one tenant, for example by department or region, add Virtual Environments (Tenant Segmentation, included in the Enterprise Plan) to its Environment.