->TeamsUpgradePolicy can be assigned to any Teams user, whether that user hase an on-premises account in Skype for Business Server or not. However, **TeamsOnly mode can only be assigned to a user who is already homed in Skype for Business Online**. This is because interop with Skype for Business users and federation as well as Microsoft 365 Phone System functionality are only possible if the user is homed in Skype for Business Online. In addition, you cannot assign TeamsOnly mode as the tenant-wide default if you have any Skype for Business on-premises deployment (which is detected by presence of a lyncdiscover DNS record that points to a location other than Office 365. To make these users TeamsOnly you must first move these users individually to the cloud using `Move-CsUser`. Once all users have been moved to the cloud, you can [disable hybrid to complete migration to the cloud] (https://docs.microsoft.com/en-us/skypeforbusiness/hybrid/cloud-consolidation-disabling-hybrid) and then apply TeamsOnly mode at the tenant level to ensure future users are TeamsOnly by default.
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