When moving a user from Skype for Business Server 2015 to Skype for Business Online (a hybrid deployment), the move fails with the following error:
Move-CsUser : HostedMigration fault: Error=(507), Description=(The user could not be moved because he or she has not been an assigned a Skype for Business Online license. Users must be licensed before they can be moved to Skype for Business Online.
The following PowerShell command is being used to perform the move:
Move-CsUser -Identity sip:email@example.com -Target sipfed.online.lync.com -Credential $cred -HostedMigrationOverrideUrl https://admin1e.online.lync.com/HostedMigration/hostedmigrationservice.svc
The user is synched to Azure AD but does not have a license assigned to their account.
The user needs to be licensed for Skype for Business Online before moving the user. Unfortunately this isn’t like Exchange where you get a grace period!
Note after the license has been applied, it could take up to 30 minutes before the user can be moved. If it’s too soon, you get the following error:
Move-CsUser : HostedMigration fault: Error=(506), Description=(The user could not be moved because there appears to be a problem with this user account. Please verify the attribute settings on the account and then try again.)