Welcome to the August 2025 Microsoft 365 Update! This month brings over 25 updates across the Microsoft 365 ecosystem, including exciting new features, important retirements, and changes to existing functionality. Whether you're an IT admin, security lead, or business decision-maker, staying informed is key to avoiding disruptions and maximizing productivity.

What’s New:

• Microsoft Places Admin Center:

A new centralized portal is launching to help admins manage buildings, floors, rooms, and desks more efficiently.

• Drag & Drop in New Outlook:

Users can now drag emails and files between personal, enterprise, and shared mailboxes—boosting cross-account productivity.

• Azure AD Graph API Retirement:

These APIs will be retired in early September. Migrate to Microsoft Graph APIs before August 31 to avoid service interruptions.

• Admin Consent for Third-Party Apps:

Microsoft will enforce app consent policies by default, requiring admin approval for third-party app access.

• Classic eDiscovery Retirement:

The legacy eDiscovery (Premium) experience in Microsoft Purview will be retired. Transition to the new eDiscovery interface.

Retirements:

Here’s what’s being phased out in August and early September 2025:

• Organization Data Types in Excel:

This feature, which allowed users to access Power BI datasets directly in Excel, will be retired on July 31, 2025.

• Conditional Access “Monitoring” Feature:

Will be fully retired on August 1, 2025, impacting visibility into policy behavior.

• Microsoft Project for the Web & Project in Teams:

Both will be retired in August 2025, signaling a shift toward more integrated planning tools.

• Cognitive Services & Azure ML in Power BI:

These integrations will be removed, prompting users to explore alternative AI capabilities.

• Speaker Coach in Microsoft Teams:

The personalized feedback tool for meetings will be retired starting mid-August 2025.

• Client Access Rules (CARs) in Exchange Online:

These legacy access controls will be deprecated by September 1, 2025, requiring migration to modern access policies.

New Capabilities and Integrations Across Microsoft 365:

Microsoft continues to expand its security, collaboration, and productivity features with powerful new tools and integrations:

• Copilot Protection via Sensitivity Labels: Microsoft Purview Data Loss Prevention will now prevent Microsoft 365 Copilot from accessing or processing emails that carry sensitivity labels—ensuring sensitive content remains secure and compliant.

• AI-Powered Data Risk Detection with DSI: Microsoft Purview Data Security Investigations (DSI) introduces advanced AI capabilities to help security teams detect, analyze, and mitigate data risks more effectively across the organization.

• Insider Risk Management for AI Activity: New detections in Insider Risk Management will identify risky AI behavior, including sensitive prompt usage, suspicious intent, and AI-generated sensitive content—enhancing oversight in AI-integrated workflows.

• Sensitivity Labels at the Library Level in SharePoint Online: Document library owners can now apply sensitivity labels directly to the entire library. Unlabeled or unprotected files will inherit the label, and downloaded files will retain site-level permissions even outside SharePoint.

• eDiscovery APIs Move to V1: Microsoft is promoting its eDiscovery APIs from Beta to V1, introducing enhanced parameters and export formats that improve accuracy and streamline legal and compliance workflows.

• Silent Call Simulations in Microsoft Teams: IT admins can now run silent call simulations to assess network readiness and proactively identify performance issues—without disrupting users.

• Delegated Survey Management in Viva Engage: A new delegation feature allows admins to assign Pulse survey responsibilities to other users, improving flexibility and operational efficiency in employee engagement initiatives.

• Simplified Sign-In for Teams Web: Starting mid-August 2025, Microsoft Teams on the web will support sign-in using Apple or Google credentials, making access more convenient for users across platforms.

• Map-Based Desk Booking in Microsoft Places: Teams Premium users will gain access to a new desk reservation feature using interactive floor maps—streamlining workspace management and enhancing hybrid work experiences.

• IRM Integration with Microsoft Defender XDR: Insider Risk Management (IRM) data will now integrate with Microsoft Defender XDR, enabling deeper threat investigations and more comprehensive event correlation across security platforms.

Enhancements That Improve Usability and Oversight:

August brings several thoughtful improvements across Microsoft 365 services, aimed at boosting transparency, control, and user experience:

• Smarter Backup in Microsoft Authenticator for iOS:

Users can now back up all account names—including school, work, personal, and even third-party accounts like Google and Amazon—using iCloud and iCloud Keychain. This makes switching devices or restoring access smoother than ever.

• Clearer Audit Logs in Microsoft Purview:

Admins will benefit from more transparent audit messages when managing role group permissions. New fields like PreExecutionMessage and PostExecutionMessage offer better visibility into changes made during GrantPermission and DeletePermission operations.

• User Limits in Microsoft Fabric Workspaces:

To improve performance and manageability, each Fabric workspace will now support up to 1,000 users or groups across all roles—Admin, Member, Contributor, and Viewer.

• Advanced SharePoint Page Analytics:

Starting mid-August, SharePoint will introduce long-term data retention, reporting by distribution lists, and new export options—giving content owners deeper insights into engagement and reach.

• Customizable Policy Alerts in Microsoft Purview:

A new alert configuration page allows admins to fine-tune how and when they receive policy alerts. You can now set alert frequency and designate specific recipients, making compliance monitoring more efficient and tailored to your organization’s needs.

 

Updates to Existing Functionality:

Microsoft is refining several existing features to enhance control, transparency, and operational efficiency across its services:

• Improved Document Storage in SharePoint eSignature:

Documents signed via Adobe or DocuSign will now be saved in the original folder where the signing process began—rather than the default "Apps" folder—ensuring better organization and traceability.

• Independent Configuration of DLP Notifications:

Admins can now enable email notifications and policy tips separately in SharePoint and OneDrive Data Loss Prevention (DLP) policies. This change offers greater flexibility compared to the previous requirement to activate both settings simultaneously.

• Updated Output Format for Exchange Online Cmdlets:

The Get-Mailbox cmdlet will now display the Database property using a fully qualified path. For example:

From: Database : APCP153DG038-db080 

To:   Database : APCP153.PROD.OUTLOOK.COM/7ad9dea1-26b7-4088-ad73-708c219faff6

This change improves clarity and aligns with modern Exchange architecture.

• KYC Requirement for Teams Phone Number Requests:

Teams administrators must now complete a Know Your Customer (KYC) verification before requesting new phone numbers. This includes submitting organizational details and supporting documents through the Teams Admin Center.

• Standardized Sender Address for Teams DLP Reports:

Starting August 20, 2025, all Teams DLP incident report emails will be sent exclusively from:
no-reply@teams.mail.microsoft.com
This change helps streamline email filtering and improve security.

• Billing Changes for Microsoft Graph Metered APIs:

Beginning August 25, 2025, selected Graph APIs—including Teams chat exports and meeting transcripts—will no longer incur usage-based charges, simplifying cost management for developers and IT teams.

• Scoped Results for Get-FederationInformation Cmdlet:

The Get-FederationInformation cmdlet will now return results only for the domain explicitly specified in the parameter, reducing unnecessary data and improving query precision.

 

Action Required

• Legacy Message Trace UI and cmdlets retiring Sept 1
• Graph Beta API permissions update required by July 31

 

Retirement Postponed

• Power Automate’s “Send me an email notification” action has been postponed, but switching to supported alternatives is strongly recommended.

 

As Microsoft 365 changes over time, it's important to stay updated to keep your data safe, be productive, and follow the rules. At Ctelecoms, we help Saudi businesses deal with these changes. We are a Microsoft Gold Partner, so we can help you use Microsoft 365 Copilot, make workflows that use AI more effective, and create good management plans. Ctelecoms is here for you when you need to improve access, manage retirements, or strengthen data protection. We are your reliable partner in digital transformation.