What is a cloud Tenant or Tenancy?

In Azure, an Organization usually has a single cloud Active Directory (AD) Tenancy. A Tenancy has Subscriptions and Subscriptions have Resource Groups. These Resource Groups contain the resources that are deployed. When we talk about a Tenancy or Tenant we are referring to all the resources that belong to an organization including all environments such as Prod and Non-Prod, Test and Dev accounts etc. The Microsoft documentation demonstrates the relationship between Management Groups, Subscriptions, Resource Groups and Resources The Tenancy is the same as the Root Management Group – it is everything below the root:
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Figure 1: How the four management-scope levels relate to each
An enterprise organization normally would manage their departments like this, depending on the size:
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Figure 2: Example of an enterprise management structure with Tenancy at the top
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