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I am working on an Office 365 sharepoint online, and for sharing certain site collections i want to set this option:-

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But for some external users, they do not exists inside our office 365 users. so my question is can we create external users inside our office 365 users' list, so we can enable external sharing for our sharepoint sites, but at the same time to mention that we can only share with existing external users?? I know that external users accounts will be created automatically for us if we share a site with an external user, and the user try to access the site. but for security reasons i do not want to enable external sharing for everyone, i only want to enable external sharing for existing users..so not sure if i can create an external user account in advance inside office 365?

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You can invite external users via Azure B2B. See What is Azure AD B2B collaboration? for information on how to add users to Azure. You can then add them as normal to SharePoint Online/OneDrive for Business.

  • thanks for the info, but to minimize the work from our side since we did not work on b2b collaboration,So is there any harm if i follow this scenario:- Create a new test site collection, allow sharing with any external users, invite external users to this new test site collection, so external users will be added to the office 365 directory. after that on our real site collection i will be able to invite these users since they have been added to office users directory ... not sure if it will work. – john Gu Apr 10 '18 at 14:37
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    Yes, that will work. Azure B2B and SPO sharing are in essence the same. SPO adds the user to Azure AD just as Azure B2B does. At this point, the B2B user can have any content within SPO shared with them. – Trevor Seward Apr 10 '18 at 14:38

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