banner-why-daymark.jpg

Information Technology Navigator

Tips, Advice & Insights from Technology Pros

GCC High Tenant vs. Secure Enclave

Posted by Trent Chamness

Thu, Jan 15, 2026

Seesaw showdown_ GCC High vs Secure Enclave

Comparing Common Approaches to GCC High Migration

Introduction

Organizations that work with U.S. government contracts or handle sensitive regulated data often face tough decisions about their cloud strategy. Two common approaches for meeting requirements are migrating all users to a dedicated Microsoft GCC High tenant or creating a secure enclave and migrating only select users. This blog post explores the differences between these two strategies, highlighting the pros and cons of each so you can make an informed decision for your organization.

What Is GCC High?

Microsoft GCC High (Government Community Cloud High) is a dedicated cloud environment designed specifically for U.S. government agencies and contractors that must comply with strict regulatory standards, such as FedRAMP High, ITAR, and DFARS when handling controlled unclassified information (CUI). GCC High provides enhanced controls, data residency in the continental United States, and a dedicated infrastructure that separates government data from commercial environments.

What Is a Secure Enclave?

A secure enclave is a segmented environment within an organization's broader IT infrastructure that is designed to isolate and protect sensitive data. In the context of Microsoft 365, this typically means creating a separate tenant (such as GCC High) and migrating only those users who need to handle regulated government data, while the rest of the organization remains in the standard commercial cloud.

Full GCC High Tenant Migration

Migrating the entire organization to a GCC High tenant means every user, mailbox, and data source is moved to the dedicated government cloud environment. This approach is often chosen by organizations whose operations are deeply intertwined with government contracts, or when regulatory requirements affect the majority of their workforce.

Pros:

  • Works toward uniform compliance with government regulations across the entire organization.
  • Simplifies IT management by eliminating management of multiple environments.
  • Promotes consistent security and compliance across the organization, reducing risks of data exposure or compliance gaps.
  • Prepares organizations for CMMC compliance

Cons:

  • GCC High licensing is typically more expensive than commercial cloud offerings.
  • Some third-party integrations and features available in commercial Microsoft 365 may not be supported in GCC High.
  • Migrations can be complex and require intricate planning, especially for larger organizations.

Secure Enclave

With a secure enclave approach, only users who need access to regulated data are migrated to GCC High, while others remain in the commercial cloud. This creates a dual environment, where certain workflows and communications are segmented between the enclave and the main tenant.

Pros:

  • Cost-effective, as only critical users require GCC High licensing.
  • Minimizes disruption for users who do not handle regulated data.
  • Allows the organization to continue leveraging commercial cloud features for the majority of users.

Cons:

  • Managing a split environment can be complex, with challenges in potential cross-tenant collaboration and communication.
  • Data flow between the enclave and commercial tenant must be carefully controlled to maintain compliance.
  • Potential for user confusion and workflow interruptions.

Key Differences

Aspect

Full GCC High Tenant

Secure Enclave

Scope

All users and data

Only select users/data

Cost

Higher (all users require GCC High licenses)

Lower (only critical users require GCC High licenses)

IT Complexity

Standardizes environment management

Creates dual environments; more complex

Compliance

Uniform compliance

Compliance limited to enclave users

Feature Availability

Some commercial features may be missing

Non-enclave users retain commercial features

Disruption

Higher (entire org migrates)

Lower (fewer users migrate)

Choosing the Right Approach

The decision between a full GCC High tenant migration and creating a secure enclave depends on your organization’s regulatory obligations, budget, operational needs, and user workflows. Organizations with extensive compliance needs or those seeking a straightforward process may prefer a full migration, while those with limited regulated data exposure may benefit from the enclave strategy.

Conclusion

Both migration strategies have their place, and choosing the right one requires a careful assessment of your security, compliance, and business needs. Consult with your IT and compliance teams, and consider engaging with Daymark to guide your migration journey. Contact us here.