Category: Uncategorized

How to Configure Microsoft 365 Business Premium to Block AI Browsers: A Complete Guide to Stopping Comet and Other Agentic Browsers

Executive Summary

In December 2025, Gartner issued an urgent advisory recommending that organizations “block all AI browsers for the foreseeable future” due to critical cybersecurity risks.AI browsers like Perplexity’s Comet and OpenAI’s ChatGPT Atlas introduce threats including irreversible data loss, prompt injection vulnerabilities, and unauthorized credential access.With 27.7% of organizations already having at least one user with an AI browser installed,the time to act is now. [computerworld.com]

This comprehensive guide provides step-by-step instructions for configuring Microsoft 365 Business Premium (M365 BP), specifically Microsoft Defender for Cloud Apps, to detect, monitor, and block AI-enabled browsers like Comet from accessing your enterprise resources.

Understanding the AI Browser Threat Landscape

Why AI Browsers Are Dangerous

According to Gartner analysts, “The real issue is that the loss of sensitive data to AI services can be irreversible and untraceable. Organizations may never recover lost data.” [computerworld.com]

Key Security Concerns:

  1. Autonomous Actions Without Oversight – AI browsers can autonomously navigate websites, fill out forms, and complete transactions while authenticated, creating accountability concerns for erroneous or malicious actions [computerworld.com]
  2. Traditional Controls Are Inadequate – “Traditional controls are inadequate for the new risks introduced by AI browsers, and solutions are only beginning to emerge,” according to Gartner’s senior director analyst Evgeny Mirolyubov [computerworld.com]
  3. Multi-Modal Communication Gaps – A major gap exists in inspecting multi-modal communications with browsers, including voice commands to AI browsers [computerworld.com]
  4. Immature Security Posture – Discovered vulnerabilities highlight broader concerns about the maturity of AI browser technology, with solutions likely taking “a matter of years rather than months” to mature [computerworld.com]

Prerequisites and Licensing Requirements

Required Licenses

To implement comprehensive AI browser blocking, you need: [wolkenman….dpress.com]

License OptionWhat’s Included
Microsoft 365 Business Premium + E5 Security Add-onDefender for Cloud Apps + Defender for Endpoint
Microsoft 365 E5 / A5 / G5Full suite including Conditional Access App Control
Enterprise Mobility + Security E5Defender for Cloud Apps + Defender for Endpoint
Microsoft 365 F5 Security & ComplianceAll required components
Microsoft 365 Business Premium + Defender for Cloud Apps Add-onMinimum required configuration

Technical Prerequisites

Before implementing blocking policies, ensure: [learn.microsoft.com], [learn.microsoft.com]

  • ✅ Microsoft Defender for Cloud Apps license (standalone or bundled)
  • ✅ Microsoft Entra ID P1 license (standalone or bundled)
  • ✅ Microsoft Defender for Endpoint deployed and configured
  • ✅ Cloud Protection enabled in Defender for Endpoint [learn.microsoft.com]
  • ✅ Network Protection enabled in Defender for Endpoint [learn.microsoft.com]
  • ✅ Admin permissions – Global Administrator or Security Administrator role
  • ✅ Microsoft Defender Browser Protection extension installed on non-Edge browsers [learn.microsoft.com]

Multi-Layered Defense Strategy

Blocking AI browsers requires a comprehensive, defense-in-depth approach using multiple Microsoft 365 security layers:

Configuration Guide: Step-by-Step Implementation

Phase 1: Enable Cloud Discovery for AI Applications

Objective: Gain visibility into which AI browsers and applications are being used in your organization.

Step 1.1: Access Cloud Discovery Dashboard

  1. Navigate to Microsoft Defender Portal (https://security.microsoft.com)
  2. Go to Cloud Apps → Cloud Discovery → Dashboard
  3. Set the time range to Last 90 days for comprehensive analysis [wolkenman….dpress.com]

Step 1.2: Filter for Generative AI Applications

  1. In the Cloud Discovery dashboard, click Category filter
  2. Select “Generative AI” from the category list [wolkenman….dpress.com]
  3. Review discovered AI applications with their risk scores
  4. Note applications with High Risk status (red indicators) [wolkenman….dpress.com]

Step 1.3: Identify AI Model Providers and MCP Servers

Beyond browsers, also identify: [wolkenman….dpress.com]

  • AI – Model Providers (Azure OpenAI API, Google Gemini API, Anthropic Claude API)
  • AI – MCP Servers (Model Context Protocol servers)

Navigate to: Cloud Apps → Cloud App Catalog → Filter by “AI – Model Providers” and “AI – MCP Servers”

Phase 2: Configure Defender for Endpoint Integration

Objective: Enable automatic blocking of unsanctioned apps through network-level enforcement.

Step 2.1: Enable Enforce App Access

  1. In Microsoft Defender Portal, navigate to:
  2. Toggle “Automatically block unsanctioned apps” to ON
  3. This creates automatic indicators in Defender for Endpoint when apps are marked as unsanctioned [wolkenman….dpress.com]

Step 2.2: Verify Network Protection Status

Ensure Network Protection is enabled for all browsers: [wolkenman….dpress.com]

  1. Navigate to Settings → Endpoints → Configuration Management
  2. Go to Enforcement Scope → Network Protection
  3. Verify status is set to “Block mode” (not just Audit mode)
  4. Apply to All devices or specific device groups

Why This Matters: Network Protection ensures that blocks work across all browsers (Chrome, Firefox, etc.), not just Microsoft Edge. [wolkenman….dpress.com]

Phase 3: Unsanction and Block Comet Browser

Objective: Mark Comet and other AI browsers as unsanctioned to trigger automatic blocking.

Step 3.1: Search for Comet in Cloud App Catalog

  1. Go to Cloud Apps → Cloud App Catalog
  2. Use the search function to find “Comet” or “Perplexity”
  3. Click on the application to review its risk assessment

Note: If Comet hasn’t been discovered yet in your environment, you can still add custom URLs for blocking (see Phase 6).

Step 3.2: Unsanction the Application

  1. Click the three dots (⋮) at the end of the application row
  2. Select “Unsanctioned” [learn.microsoft.com]
  3. A confirmation dialog will appear indicating the app will be blocked by Defender for Endpoint [wolkenman….dpress.com]
  4. Click Confirm

Step 3.3: Verify Indicator Creation

  1. Navigate to Settings → Endpoints → Indicators → URLs/Domains [wolkenman….dpress.com]
  2. Confirm that domains associated with Comet appear with action “Block execution”
  3. Processing may take 5-15 minutes

Example domains that may be blocked:

  • *.perplexity.ai
  • comet.perplexity.ai
  • Related CDN and API endpoints

Phase 4: Create Conditional Access Policies

Objective: Route traffic through Defender for Cloud Apps proxy for deep inspection and control.

Step 4.1: Create Base Conditional Access Policy

  1. Sign in to Microsoft Entra Admin Center (https://entra.microsoft.com)
  2. Navigate to Protection → Conditional Access → Policies
  3. Click + New policy [learn.microsoft.com]

Step 4.2: Configure Policy Settings

Policy Name: Block AI Browsers via Session Control

Assignments: [learn.microsoft.com]

SettingConfiguration
UsersSelect All users (exclude break-glass accounts)
Target ResourcesSelect Office 365, SharePoint Online, Exchange Online
ConditionsOptional: Add device platform, location filters

Access Controls: [learn.microsoft.com]

  • Under Session → Select “Use Conditional Access App Control”
  • Choose “Use custom policy”
  • Click Select

Enable Policy: Set to Report-only initially for testing [learn.microsoft.com]

Step 4.3: Save and Validate

  1. Click Create
  2. Wait 5-10 minutes for policy propagation
  3. Test with a pilot user account

Critical Note: Ensure the “Microsoft Defender for Cloud Apps – Session Controls” application is NOT blocked by other Conditional Access policies, or session controls will fail. [learn.microsoft.com]

Phase 5: Create Session Policies to Block AI Browser User Agents

Objective: Create real-time session policies that identify and block AI browsers based on user-agent strings and behavioral patterns.

Step 5.1: Create Access Policy for User-Agent Blocking

This is one of the most effective methods to block specific browsers like Comet. [securityhq.com]

  1. In Microsoft Defender Portal, navigate to:
  2. Click Create policy → Access policy [learn.microsoft.com]

Step 5.2: Configure Access Policy Details

Basic Information: [learn.microsoft.com]

FieldValue
Policy NameBlock AI Browsers - Comet and Similar Agents
Policy SeverityHigh
CategoryAccess control
DescriptionBlocks access attempts from AI-enabled browsers including Comet, Atlas, and other agentic browsers based on user-agent detection

Step 5.3: Set Activity Filters

Activities matching all of the following: [learn.microsoft.com]

  1. App: Select applications to protect
    • Office 365
    • Exchange Online
    • SharePoint Online
    • Microsoft Teams
    • OneDrive for Business
  2. Client app: Select Browser [learn.microsoft.com]
  3. User agent tag:
    • Contains “Comet”
    • Or create custom user-agent filter (see Step 5.4)
  4. Device type: (Optional) Apply to specific device types

Step 5.4: Create Custom User-Agent String Filters

While Defender for Cloud Apps doesn’t expose direct user-agent string matching in the UI by default, you can leverage activity filters: [securityhq.com]

Known AI Browser User-Agent Patterns to Block:

User-Agent patterns (Create separate policies or use contains logic):
- Contains "Comet"
- Contains "Perplexity"
- Contains "axios" (common in automated tools)
- Contains "ChatGPT" (for Atlas browser)
- Contains "AI-Browser"
- Contains "agentic"

Advanced Method – Using Session Policy with Inspection:

  1. Create a Session Policy instead of Access Policy
  2. Set Session control type: to “Block activities” [learn.microsoft.com]
  3. Under Activity type, select relevant activities
  4. In Inspection method, configure content inspection rules

Step 5.5: Set Actions

Actions:

  • Select “Block”
  • Enable “Notify users” with custom message:
Access Denied: AI-Enabled Browser Detected

Your organization's security policy prohibits the use of AI-enabled browsers 
(such as Comet, Atlas, or similar tools) to access corporate resources due to 
data security and compliance requirements.

Please use Microsoft Edge, Chrome, or Firefox to access this resource.

If you believe this is an error, contact your IT helpdesk.

Step 5.6: Enable Governance Actions

  • Select “Send email to user”
  • Select “Alert severity” as High
  • Enable “Create an alert for each matching event”

Step 5.7: Activate the Policy

  1. Review all settings
  2. Click Create
  3. Policy becomes active immediately
  4. Monitor via Activity Log for matches

Phase 6: Block Comet Domains via Custom Indicators

Objective: Manually add Comet-related domains to Defender for Endpoint indicators for network-level blocking.

Step 6.1: Identify Comet-Related Domains

Based on Perplexity’s infrastructure, key domains include: [computerworld.com]

Primary Domains:
- perplexity.ai
- www.perplexity.ai
- comet.perplexity.ai
- api.perplexity.ai

CDN and Supporting Infrastructure:
- *.perplexity.ai (wildcard)
- assets.perplexity.ai
- cdn.perplexity.ai

Step 6.2: Create URL/Domain Indicators

  1. Navigate to Settings → Endpoints → Indicators → URLs/Domains
  2. Click + Add item

For each domain, configure:

FieldValue
Indicatorperplexity.ai
ActionBlock
ScopeAll device groups (or specific groups)
TitleBlock Perplexity Comet Browser
DescriptionBlocks access to Perplexity Comet AI browser per organizational security policy
SeverityHigh
Generate alertYes
  1. Click Save
  2. Repeat for all identified domains

Step 6.3: Test Domain Blocking

  1. From a test device with Defender for Endpoint installed
  2. Navigate to https://www.perplexity.ai in any browser
  3. You should see: [wolkenman….dpress.com]
This site has been blocked by your organization
Microsoft Defender SmartScreen blocked this unsafe site

This web page was blocked by Microsoft Defender Application Control
perplexity.ai has been blocked by your IT administrator

Phase 7: Create Cloud Discovery Policies for Alerting

Objective: Set up automated alerts when AI browsers are detected in your environment.

Step 7.1: Create App Discovery Policy

  1. Navigate to Cloud Apps → Policies → Policy Management
  2. Click Create policy → App discovery policy [learn.microsoft.com]

Step 7.2: Configure Discovery Policy

Policy Template: Use “New risky app” template or create custom [learn.microsoft.com]

FieldConfiguration
Policy NameAlert on New AI Browser Detection
CategoryCloud discovery
Risk scoreHigh and Medium
App categorySelect “Generative AI”
Traffic volumeGreater than 10 MB (adjust as needed)

Filters:

  • App category equals Generative AI
  • Risk score less than or equal to 6 (out of 10)
  • App tag equals Unsanctioned

Governance Actions:

  • Send email to security team
  • Create alert with High severity

Testing and Validation

Validation Checklist

Monitoring and Reporting

Activity Log Monitoring:

  1. Cloud Apps → Activity Log
  2. Filter by:
    • Policy: Select your AI browser blocking policies
    • Action taken: Block
    • Date range: Last 7 days

Defender for Endpoint Alerts:

  1. Incidents & Alerts → Alerts
  2. Filter by:
    • Category: Custom indicator block
    • Title: Contains “Perplexity” or “Comet”

Advanced Configuration Options

Option 1: Device Compliance Requirements

Combine AI browser blocking with device compliance:

  1. In Conditional Access policy, add Conditions → Device platforms
  2. Require devices to be Compliant or Hybrid Azure AD Joined
  3. Use Intune compliance policies to check for:
    • Comet browser installation (custom script detection)
    • Other AI browser installations

Option 2: Warn and Educate Mode

Before full blocking, consider “Warn and Educate” mode: [learn.microsoft.com]

  1. Set indicators to “Warn” instead of “Block”
  2. Users see warning message but can proceed (with logging)
  3. Collect usage data for 2-4 weeks
  4. Transition to Block mode after user education

Option 3: Scoped Blocking by Device Groups

Target specific departments first:

  1. In Defender for Endpoint, create device groups:
    • Finance Team
    • Executive Leadership
    • High-Risk Departments
  2. Apply indicators only to these groups initially
  3. Expand gradually after validation

Option 4: DLP Integration for Data Leaving via AI Browsers

Even with blocks, ensure data leakage prevention:

  1. Create Microsoft Purview DLP policies
  2. Target “All locations” including endpoints
  3. Configure rules to detect sensitive data:
    • Credit card numbers
    • Social Security numbers
    • Confidential project names
  4. Block upload/sharing of sensitive content

Identifying Comet Browser Technical Indicators

User-Agent String Analysis

While official Comet user-agent strings aren’t publicly documented by Perplexity, AI browsers typically exhibit these patterns:

Common AI Browser User-Agent Characteristics:

Mozilla/5.0 (Platform) ... Comet/[version]
Mozilla/5.0 (Platform) ... Perplexity/[version]
Chromium-based with custom identifiers
May contain "AI", "Agent", "Agentic" in UA string

Detection Strategy:

  1. Review Activity Log in Defender for Cloud Apps
  2. Filter for unknown/suspicious user agents
  3. Export activity data with user-agent strings
  4. Analyze patterns using PowerShell or Excel
  5. Update policies based on findings

Network Traffic Patterns

Comet communicates with Perplexity cloud infrastructure: [computerworld.com]

  • High-frequency API calls to api.perplexity.ai
  • WebSocket connections for real-time AI responses
  • Upload of page content and browsing context
  • Telemetry to Perplexity servers

Monitor via Defender for Cloud Apps:

  • Cloud Apps → Activity Log
  • Filter by IP address ranges (if known)
  • Look for unusual upload patterns

Troubleshooting Common Issues

Issue 1: Blocks Not Working in Chrome/Firefox

Symptom: Comet/Perplexity sites accessible in non-Edge browsers

Solution: [wolkenman….dpress.com]

  1. Verify Network Protection is enabled in Defender for Endpoint
  2. Check Settings → Endpoints → Configuration Management
  3. Ensure status is “Block” not “Audit”
  4. Restart browser and test again

Issue 2: Conditional Access Policy Not Triggering

Symptom: Users can access M365 apps without session controls

Solution:

  1. Verify Conditional Access policy is in “On” mode (not Report-only) [learn.microsoft.com]
  2. Check that “Microsoft Defender for Cloud Apps – Session Controls” app is not blocked
  3. Ensure apps are listed as “Monitored” in Conditional Access App Control [securityhq.com]
  4. Clear browser cache and test in incognito mode

Issue 3: Legitimate Traffic Being Blocked

Symptom: False positives blocking valid user activity

Solution:

  1. Review Activity Log for specific blocked events
  2. Refine user-agent filters to be more specific
  3. Create exception policies for legitimate tools
  4. Use “Exclude” filters in policies for specific users/groups

Issue 4: Indicators Not Appearing in Defender for Endpoint

Symptom: Unsanctioned apps don’t create indicators

Solution:

  1. Verify “Enforce App Access” is enabled [wolkenman….dpress.com]
  2. Check that Defender for Endpoint integration is active
  3. Wait 15-30 minutes for synchronization
  4. Manually create indicators if automatic creation fails

Best Practices and Recommendations

Strategic Recommendations

  1. Phased Rollout Approach
    • Week 1-2: Report-only mode, gather usage data
    • Week 3-4: Warn mode for user education
    • Week 5+: Full block mode enforcement
  2. User Communication Strategy[computerworld.com]
    • Send organization-wide email explaining policy
    • Provide approved alternatives
    • Create FAQ document
    • Offer training on secure browsing practices
  3. Continuous Monitoring
    • Review Cloud Discovery weekly for new AI apps
    • Monitor activity logs daily for policy violations
    • Track emerging AI browser releases
    • Update indicators quarterly
  4. Exception Process
    • Create formal request process for exceptions
    • Require executive approval for high-risk apps
    • Document business justification
    • Apply additional controls for approved exceptions (DLP, session monitoring)
  5. Defense in Depth[wolkenman….dpress.com]
    • Don’t rely solely on browser blocking
    • Implement data loss prevention (DLP)
    • Use endpoint detection and response (EDR)
    • Enable Microsoft Purview for data governance
    • Deploy insider risk management

Policy Comparison Table

MethodScopeEffectivenessUser ExperienceManagement Overhead
Cloud Discovery + UnsanctioningNetwork-wide⭐⭐⭐⭐⭐Transparent (blocked before access)Low (automated)
Session PoliciesM365 Apps only⭐⭐⭐⭐May show warning messagesMedium (requires tuning)
Access PoliciesM365 Apps only⭐⭐⭐⭐⭐Blocks before session startsMedium
Manual IndicatorsAll network traffic⭐⭐⭐⭐TransparentHigh (manual updates)
Conditional AccessCloud apps only⭐⭐⭐⭐May require re-authenticationLow

Recommended Combination: Use Cloud Discovery + Unsanctioning AND Access Policies for comprehensive coverage.

Staying Current: Monitoring New AI Browsers

AI browsers are rapidly evolving. Stay ahead of threats:

Monthly Review Checklist

✅ Cloud App Catalog Updates

  • Review newly discovered apps in Generative AI category
  • Check for new AI Model Providers
  • Assess risk scores of emerging tools

✅ Threat Intelligence

  • Monitor Gartner reports on AI browser security [gartner.com]
  • Follow Microsoft Security Blog
  • Subscribe to CISA alerts
  • Track CVE databases for AI browser vulnerabilities

✅ Policy Effectiveness

  • Review blocked connection attempts
  • Analyze bypass attempts
  • Update user-agent filters
  • Refine domain lists

Emerging AI Browsers to Monitor

Beyond Comet and Atlas, watch for:

  • Brave Leo Browser (AI-enhanced features)
  • Opera One (integrated AI)
  • Arc Browser (with AI capabilities)
  • SigmaOS (AI-powered browsing)
  • Browser Company products

Compliance and Documentation

Required Documentation

Maintain these records for audit purposes:

  1. Policy Documentation
    • Policy names, purposes, and justifications
    • Configuration settings and filters
    • Approval chains and stakeholder sign-offs
  2. Change Log
    • Policy modifications
    • Domain additions/removals
    • Exception approvals
  3. Incident Reports
    • Blocked access attempts
    • Policy violations
    • User complaints and resolutions
  4. Risk Assessment
    • Why AI browsers are blocked
    • Business impact analysis
    • Alternative solutions provided to users

Regulatory Considerations

Consider these compliance frameworks:

FrameworkRelevance
GDPRData processing outside organization control
HIPAAProtected health information exfiltration risk
SOXFinancial data protection requirements
PCI DSSCardholder data security
NIST 800-53Access control requirements

Conclusion: Taking Action Against AI Browser Risks

The threat posed by AI browsers like Perplexity’s Comet is real, immediate, and growing. With security experts uniformly recommending that organizations “block all AI browsers for the foreseeable future,”the time for action is now—not later. [pcmag.com], [gartner.com]

Key Takeaways:

  1. Gartner’s Warning is Clear: AI browsers introduce “irreversible and untraceable” data loss risks that traditional controls cannot adequately mitigate [computerworld.com]
  2. Multi-Layered Defense is Essential: Combining Cloud Discovery, Session Policies, Access Policies, and Network Protection provides comprehensive coverage
  3. Microsoft 365 Business Premium Provides the Tools: With Defender for Cloud Apps and Defender for Endpoint, you have enterprise-grade capabilities to detect and block AI browsers
  4. User Education is Critical: Technical controls must be paired with clear communication about why AI browsers pose risks and what alternatives are approved
  5. Continuous Vigilance Required: The AI browser landscape evolves rapidly; monthly reviews of your defenses are essential [computerworld.com]

Immediate Action Steps

This Week:

  1. ✅ Enable Cloud Discovery and filter for Generative AI apps
  2. ✅ Review current AI browser usage in your organization
  3. ✅ Enable “Enforce App Access” in Defender for Cloud Apps
  4. ✅ Verify Network Protection is enabled in Defender for Endpoint

Next Week:

  1. ✅ Create Conditional Access policy routing traffic to MDCA
  2. ✅ Unsanction Comet and other AI browsers
  3. ✅ Create custom domain indicators for Perplexity infrastructure
  4. ✅ Deploy in Report-only mode for pilot group

Within 30 Days:

  1. ✅ Create Access Policies with user-agent filtering
  2. ✅ Enable full blocking mode organization-wide
  3. ✅ Communicate policy to all users
  4. ✅ Establish ongoing monitoring processes

Additional Resources

Microsoft Documentation:

Security Research:

Community Resources:

Disabling Office Macros via ASR to Meet Essential Eight Requirements

Using M365 Business Premium

The Essential Eight Mitigation Strategy #3 – Configure Microsoft Office Macro Settings requires organizations to disable Office macros by default for users without a demonstrated business need.1In cloud-only environments using Microsoft 365 Business Premium and Microsoft Intune, this can be achieved through multiple complementary approaches: 

  1. Configuration Profiles (Settings Catalog or Imported Administrative Templates) 
  1. Attack Surface Reduction (ASR) Rules 
  1. Microsoft Defender for Endpoint capabilities (included in Business Premium) 

However, there is an important limitation: Microsoft 365 Business Premium includes Microsoft 365 Apps for Business, which has limited support for the Office Cloud Policy Service—only privacy-related policies are supported.2For full macro control policies, you must use Configuration Profiles in Intune instead.3 

Understanding Essential Eight Macro Security Requirements 

Essential Eight Maturity Level Requirements 

The Australian Cyber Security Centre (ACSC) Essential Eight framework defines specific controls for Microsoft Office macro security:4 

Key ISM Controls (March 2025) 

The Essential Eight implementation addresses multiple Information Security Manual (ISM) controls:5 

ISM Control Requirement Implementation Method 
ISM-1671 Macros disabled for users without business requirement Configure “Disable VBA for Office applications” policy 
ISM-1488 Block macros from internet sources Enable “Block macros from running in Office files from the internet” 
ISM-1675 Disable Trust Bar for unsigned macros Configure “Disable Trust Bar Notification for unsigned applications” 
ISM-1672 Enable macro antivirus scanning Set “Macro Runtime Scan Scope” to “Enable for all documents” 
ISM-1673 Block Win32 API calls from macros Deploy ASR rule 92E97FA1-2EDF-4476-BDD6-9DD0B4DDDC7B 
ISM-1489 Prevent users from changing macro settings Deploy policies via Intune (users cannot modify) 

Microsoft 365 Business Premium Capabilities for Macro Control 

What’s Included in Business Premium 

Microsoft 365 Business Premium includes: 

  • Microsoft Intune for device management 
  • Microsoft Defender for Business (includes Attack Surface Reduction) 
  • Microsoft 365 Apps for Business (desktop applications) 

Important Licensing Limitations 

⚠️ Critical Consideration: The Office Cloud Policy Service (config.office.com) has limited functionality with Microsoft 365 Apps for Business: 

  • Only privacy control policies are supported6 
  • Full macro security policies are NOT supported via Office Cloud Policy Service for Business licenses7 
  • You must use Intune Configuration Profiles (Settings Catalog or Administrative Templates) instead 

For full Office Cloud Policy Service support, you would need Microsoft 365 Apps for Enterprise licenses.8 

Implementation Approach: Configuration Profiles in Intune 

Method 1: Import Pre-Built ACSC Hardening Policy (Recommended) 

Microsoft provides pre-built configuration profiles aligned with ACSC guidance. This is the fastest and most reliable method for Essential Eight compliance. 

Step-by-Step: Import ACSC Office Hardening Policy 

Detailed Steps:9 

  1. Create Target User Group 
  • Create an Azure AD security group for “All Office Users” 
  • This group will receive Office apps and hardening policies 
  1. Download ACSC Policy Template 
  • Download the ACSC Office Hardening Guidelines JSON file10 
  1. Import to Intune 
  • Sign in to Microsoft Intune admin center: https://intune.microsoft.com[^1] 
  • Navigate to: Devices > Windows > Configuration profiles > Create 
  • Select: Import Policy 
  • Name: “ACSC Office Hardening – All Macros Disabled” 
  • Browse for the downloaded JSON file 
  • Click Save11 
  1. Import OLE Prevention Script 
  • Navigate to: Devices > Scripts > Add > Windows 10 and later 
  • Name: “OLE Package Prevention” 
  • Configure: 
  • Run script using logged-on credentials: Yes 
  • Enforce script signature check: No 
  • Run in 64-bit PowerShell: No12 
  • Assign to: All Office Users group13 
  1. Assign the Policy 
  • In the imported policy, go to Assignments 
  • Included groups: Select “All Office Users” 
  • Review + Save 

Method 2: Manual Configuration Using Settings Catalog 

If you prefer granular control, you can manually configure macro policies using Intune’s Settings Catalog. 

Step-by-Step: Create Custom Macro Blocking Policy 

  1. Create New Settings Catalog Policy 
  • Navigate to: Microsoft Intune admin center (intune.microsoft.com) 
  • Go to: Devices > Configuration policies > Create > New Policy 
  • Platform: Windows 10 and later 
  • Profile type: Settings catalog 
  • Name: “Office Macro Security – Disable All Macros” 
  1. Configure Settings for Each Office Application 

The following settings must be configured for each Office application (Word, Excel, PowerPoint, Access, Outlook):14 15 

Microsoft Office 2016 (Global Settings) 

Setting Path Configuration 
Microsoft Office 2016 > Security Settings  
Automation Security Enabled 
– Set Automation Security level Disable macros by default 
Disable VBA for Office applications Enabled 
Security Settings > Trust Center  
Allow mix of policy and user locations Disabled 

Microsoft Excel 2016 

Setting Path Configuration 
Excel Options > Security > Trust Center  
VBA Macro Notification Settings Enabled 
– VBA Macro Notification Disable all without notification 
Block macros from running in Office files from the Internet Enabled 
Trust access to Visual Basic Project Disabled 
Turn off trusted documents Enabled 
Turn off Trusted Documents on the network Enabled 
Excel Options > Security > Trust Center > Trusted Locations  
Allow Trusted Locations on the network Disabled 
Disable all trusted locations Enabled 

Microsoft Word 2016 

Setting Path Configuration 
Word Options > Security > Trust Center  
VBA Macro Notification Settings Enabled 
– VBA Macro Notification Disable all without notification 
Block macros from running in Office files from the Internet Enabled 
Trust access to Visual Basic Project Disabled 
Turn off trusted documents Enabled 
Turn off Trusted Documents on the network Enabled 
Word Options > Security > Trust Center > Trusted Locations  
Allow Trusted Locations on the network Disabled 
Disable all trusted locations Enabled 

Microsoft PowerPoint 2016 

Setting Path Configuration 
PowerPoint Options > Security > Trust Center  
VBA Macro Notification Settings Enabled 
– VBA Macro Notification Disable all without notification 
Block macros from running in Office files from the Internet Enabled 
Trust access to Visual Basic Project Disabled 
Turn off trusted documents Enabled 
Turn off Trusted Documents on the network Enabled 
PowerPoint Options > Security > Trust Center > Trusted Locations  
Allow Trusted Locations on the network Disabled 
Disable all trusted locations Enabled 

Microsoft Access 2016 

Setting Path Configuration 
Application Settings > Security > Trust Center  
VBA Macro Notification Settings Enabled 
– VBA Macro Notification Disable all without notification 
Block macros from running in Office files from the Internet Enabled 
Turn off trusted documents Enabled 
Turn off Trusted Documents on the network Enabled 
Application Settings > Security > Trust Center > Trusted Locations  
Allow Trusted Locations on the network Disabled 
Disable all trusted locations Enabled 

Microsoft Outlook 2016 

Setting Path Configuration 
Security > Trust Center  
Apply macro security settings to macros, add-ins and additional actions Enabled 
Security settings for macros Enabled 
– Security Level Never warn, disable all 
  1. Assign the Policy 
  • Assignments: Select your target user or device groups 
  • Review + Create 

Attack Surface Reduction (ASR) Rules for Essential Eight Compliance 

Can ASR Rules Meet Essential Eight Requirements? 

Yes, partially. Windows Attack Surface Reduction rules provide critical additional protections that complement macro blocking policies and help meet Essential Eight requirements.16 17 

ASR rules are included with Microsoft 365 Business Premium via Microsoft Defender for Business and can be deployed through Intune.18 

Essential Eight-Relevant ASR Rules 

The following ASR rules directly support Essential Eight mitigation strategies:19 20 

ASR Rules for Office Macro Security 

ASR Rule Name GUID Essential Eight Alignment ISM Control 
Block Win32 API calls from Office macros 92e97fa1-2edf-4476-bdd6-9dd0b4dddc7b ✅ Required – Prevents macros from making dangerous system calls ISM-1673 
Block Office applications from creating child processes d4f940ab-401b-4efc-aadc-ad5f3c50688a ✅ Recommended – Prevents macro-launched executables User App Hardening 
Block Office applications from creating executable content 3b576869-a4ec-4529-8536-b80a7769e899 ✅ Recommended – Prevents macros from creating .exe files User App Hardening 
Block Office applications from injecting code into other processes 75668c1f-73b5-4cf0-bb93-3ecf5cb7cc84 ✅ Recommended – Prevents code injection attacks User App Hardening 
Block Office communication applications from creating child processes 26190899-1602-49e8-8b27-eb1d0a1ce869 ✅ Recommended – Protects Outlook from exploitation User App Hardening 

Step-by-Step: Deploy ASR Rules via Intune 

Detailed Implementation Steps:21 

  1. Navigate to ASR Policy Creation 
  • Go to: Endpoint security > Attack surface reduction 
  • Click: Create Policy22 
  1. Configure Policy Basics 
  • Platform: Windows 10, Windows 11, and Windows Server 
  • Profile: Attack Surface Reduction Rules 
  • Name: “Essential Eight – Office ASR Rules” 
  • Description: “ASR rules aligned with ACSC Essential Eight requirements” 
  1. Configure ASR Rules 

For each of the Essential Eight-relevant rules, configure the mode:23 

ASR Rule Initial Mode Production Mode 
Block Win32 API calls from Office macros Audit Block (Required for ISM-1673) 
Block Office applications from creating child processes Audit Block 
Block Office applications from creating executable content Audit Block 
Block Office applications from injecting code into other processes Audit Block 
Block Office communication applications from creating child processes Audit Block 

Mode Definitions: 

  • Not Configured (0): Rule is disabled 
  • Block (1): Rule is enforced 
  • Audit (2): Rule logs events but doesn’t block 
  • Warn (6): User receives warning but can bypass24 
  1. Assign the Policy 
  • Assignments: 
  • Included groups: “All Windows Devices” or specific pilot groups 
  • Excluded groups: Any test or exception groups 
  • Click Next and Create 
  1. Testing and Deployment Strategy 

⚠️ Important: ASR rules should be thoroughly tested before full enforcement:25 

  • Week 1-2: Deploy all rules in Audit mode 
  • Week 3-4: Review Microsoft Defender for Endpoint logs for blocked activity 
  • Week 5+: Switch rules to Block mode for full enforcement 
  • Monitor for false positives and create exclusions as needed 

Alternative: Manual ASR Deployment via Graph API 

For advanced deployments, you can use Microsoft Graph API to deploy ASR policies programmatically:26 

Step-by-Step: 

  1. Navigate to Graph Explorer 
  • Sign in with administrator credentials 
  • Grant necessary permissions 
  1. Create POST Request 
  • Method: POST 
  • Schema: Beta 
  1. Use ACSC Windows Hardening JSON 
  • Copy the JSON content and paste into the request body 
  • Modify the policy name if needed 
  • Execute the POST request 
  1. Assign Policy 
  • Use Graph API or Intune portal to assign the created policy to your device groups 

Monitoring and Validation 

Verifying Policy Application 

After deploying policies, verify they’re working correctly: 

  1. Check Policy Status in Intune 
  • Navigate to: Devices > Monitor > Device configuration 
  • Review deployment status for your macro policies 
  • Check for any errors or conflicts28 
  1. Test on End-User Device 
  • Have a test user attempt to open a macro-enabled Office file 
  • Verify that macros are blocked and no prompt appears 
  • Check that Trust Center settings are grayed out (not user-modifiable) 
  1. Review Microsoft Defender for Endpoint 

If you have Defender for Endpoint (included in Business Premium), monitor for macro-related events:29 

  • Endpoint behavioral sensors collect macro execution attempts 
  • Cloud security analytics translate signals into insights 
  • Threat intelligence identifies attacker techniques 
  • Review alerts in the Microsoft 365 Defender portal (security.microsoft.com) 
  1. Validate ASR Rule Effectiveness 
  • Navigate to: Microsoft 365 Defender portal > Reports > Attack surface reduction rules 
  • Review triggered events for each ASR rule 
  • Identify false positives and create exclusions if needed 

Exception Management: Allowing Trusted Macros 

Some users may have legitimate business requirements for macros. The Essential Eight framework accommodates this through Trusted Publishers or Trusted Locations.30 

Option 1: Trusted Publishers (Recommended) 

Trusted Publishers use digital signatures to verify macro authenticity. This is the preferred method for Essential Eight compliance.31 

Step-by-Step: Enable Trusted Publishers 

  1. Create Exception Group 
  • Create Azure AD group: “Office Macro Users – Trusted Publishers” 
  • Add users with legitimate macro needs32 
  1. Download Trusted Publisher Policy 
  1. Import to Intune 
  • Navigate to: Devices > Configuration profiles > Import Policy 
  • Browse for downloaded JSON file 
  • Name: “ACSC Office – Trusted Publishers Enabled” 
  • Assign to: “Office Macro Users – Trusted Publishers” group33 
  1. Exclude from Macro Blocking Policy 
  • Edit your “All Macros Disabled” policy 
  • Go to Assignments 
  • Excluded groups: Add “Office Macro Users – Trusted Publishers”34 
  1. Deploy Trusted Publisher Certificates 

For each approved macro publisher:35 

  • Navigate to: Devices > Configuration profiles > Create 
  • Profile type: Trusted certificate 
  • Upload the publisher’s code-signing certificate 
  • Assign to: “Office Macro Users – Trusted Publishers” group 

Certificate Requirements:36 

  • Must use V3 signature scheme (more secure) 
  • Certificate must be from a trusted Certificate Authority 
  • Each publisher should have a separate policy for easier management 
  1. Macro Vetting Process 

Before signing any macros:37 

  • Execute macros on an isolated test device with ACSC hardening applied 
  • Verify no malicious behavior 
  • Use Microsoft Defender Antivirus scanning (automatic with ACSC policies) 
  • Consider third-party macro scanning tools for additional validation 

Comprehensive Policy Summary Table 

Configuration Profile Settings 

Policy Category Setting Configuration Purpose 
VBA Macro Execution Disable VBA for Office applications Enabled Disables VBA engine globally38 
 VBA Macro Notification Settings Disable all without notification Blocks all macros silently39 
Internet Macros Block macros from Internet sources Enabled Prevents macros from untrusted sources40 
Automation Security Automation Security Level Disable macros by default Prevents COM automation attacks41 
Trust Center Turn off trusted documents Enabled Prevents trust bypass via document trust42 
 Turn off Trusted Documents on network Enabled Prevents network trust bypass43 
 Disable all trusted locations Enabled Blocks trusted location bypass44 
 Allow mix of policy and user locations Disabled Prevents user-defined trust45 
 Trust access to VBA Project Disabled Blocks programmatic VBA access46 
Macro Scanning Macro Runtime Scan Scope Enable for all documents Enables Defender AV scanning47 

Attack Surface Reduction Rules 

ASR Rule GUID Mode Purpose 
Block Win32 API calls from Office macros 92e97fa1-2edf-4476-bdd6-9dd0b4dddc7b Block Prevents dangerous API calls (ISM-1673)48 
Block Office apps creating child processes d4f940ab-401b-4efc-aadc-ad5f3c50688a Block Prevents macro-launched executables49 
Block Office apps creating executable content 3b576869-a4ec-4529-8536-b80a7769e899 Block Prevents .exe creation50 
Block Office apps injecting code 75668c1f-73b5-4cf0-bb93-3ecf5cb7cc84 Block Prevents process injection51 
Block Outlook creating child processes 26190899-1602-49e8-8b27-eb1d0a1ce869 Block Protects email client52 

Key Limitations and Considerations 

Microsoft 365 Business Premium Constraints 

Testing Recommendations 

  1. Pilot Deployment: Test policies with a small group before organization-wide rollout53 
  1. Audit Mode First: Deploy ASR rules in Audit mode for 2-4 weeks before enforcement54 
  1. User Communication: Notify users about macro blocking to reduce helpdesk calls 
  1. Exception Process: Establish clear process for macro exception requests 
  1. Regular Review: Validate Trusted Publisher certificates annually55 

Complete Implementation Checklist 

  • Phase 1: Preparation 
  • Create Azure AD security groups (“All Office Users”, “Macro Exception Users”) 
  • Document current macro usage across organization 
  • Establish exception approval process 
  • Communicate changes to end users 
  • Phase 2: Baseline Policy Deployment 
  • Download ACSC Office Hardening policy from GitHub 
  • Import policy to Intune Configuration Profiles 
  • Download and import OLE prevention PowerShell script 
  • Assign policies to pilot group 
  • Test policy application on pilot devices 
  • Phase 3: ASR Rule Deployment 
  • Create ASR policy in Endpoint Security 
  • Configure 5 Office-related ASR rules in Audit mode 
  • Assign to pilot group 
  • Monitor events in Microsoft 365 Defender for 2-4 weeks 
  • Phase 4: Production Rollout 
  • Review audit logs for false positives 
  • Create ASR exclusions if needed 
  • Switch ASR rules to Block mode 
  • Expand deployment to all users 
  • Configure Trusted Publisher policies for exception users 
  • Phase 5: Ongoing Management 
  • Monitor Defender for Endpoint alerts 
  • Review exception requests quarterly 
  • Validate Trusted Publisher certificates annually 
  • Update policies as new ISM controls are released 

Conclusion 

Meeting the Essential Eight requirements for disabling Office macros in a cloud-only environment with Microsoft 365 Business Premium is achievable through: 

  1. Intune Configuration Profiles: Disable macros at the Office application level using Settings Catalog or imported administrative templates 
  1. Attack Surface Reduction Rules: Deploy complementary ASR rules to block macro-related attack behaviors 
  1. Exception Management: Use Trusted Publishers for users with legitimate macro needs 
  1. Continuous Monitoring: Leverage Microsoft Defender for Endpoint for visibility and alerting 

While Office Cloud Policy Service has limitations with Business Premium, Intune Configuration Profiles provide full macro control capabilities needed for Essential Eight compliance. ASR rules successfully accommodate Essential Eight requirements by providing the necessary technical controls, particularly ISM-1673 (blocking Win32 API calls from macros). 

The combination of these approaches provides defense-in-depth aligned with ACSC guidance and enables organizations to achieve Essential Eight Maturity Level 3 for macro security. 

References 

Microsoft Official Documentation 

Microsoft Learn – Essential Eight Guidance 

  • Essential Eight configure Microsoft Office macro settings 
  • Site: Microsoft Learn 

Microsoft Learn – Essential Eight User Application Hardening 

  • Essential Eight user application hardening 
  • Site: Microsoft Learn 

Microsoft Learn – Intune Office Policies 

  • Policies for Microsoft 365 Apps – Microsoft Intune 
  • Site: Microsoft Learn 

Microsoft Learn – Office Cloud Policy Service Overview 

  • Overview of Cloud Policy service for Microsoft 365 
  • Site: Microsoft Learn 

Microsoft Learn – Attack Surface Reduction Rules Reference 

  • Attack surface reduction rules reference – Microsoft Defender for Endpoint 
  • Site: Microsoft Learn 

Microsoft Learn – Manage ASR with Intune 

  • Manage attack surface reduction settings with Microsoft Intune 
  • Site: Microsoft Learn 

Microsoft Intune Admin Center 

  • Microsoft Intune admin center 
  • Site: Microsoft Intune 

Australian Cyber Security Centre (ACSC) Guidance 

Cyber.gov.au – Restricting Microsoft Office Macros 

  • Restricting Microsoft Office macros 
  • Site: Australian Cyber Security Centre (ACSC) 

Cyber.gov.au – Guidelines for System Hardening 

  • Guidelines for System Hardening 
  • Site: Australian Cyber Security Centre (ACSC) 

Cyber.gov.au – Hardening Microsoft 365 and Office 

  • Hardening Microsoft 365, Office 2021, Office 2019, and Office 2016 
  • Site: Australian Cyber Security Centre (ACSC) 

Cyber.gov.au – Microsoft Office Macro Security 

  • Microsoft Office Macro Security 
  • Site: Australian Cyber Security Centre (ACSC) 

Cyber.gov.au – Essential Eight Assessment Process Guide 

  • Essential Eight assessment process guide 
  • Site: Australian Cyber Security Centre (ACSC) 

Cyber.gov.au – Technical Example: Configure Macro Settings 

  • Technical example: Configure macro settings 
  • Site: Australian Cyber Security Centre (ACSC) 

ASD Blueprint for Secure Cloud 

ASD Blueprint – Office Hardening All Macros Disabled 

  • ASD Office hardening – all macros disabled 
  • Site: ASD’s Blueprint for Secure Cloud 

ASD Blueprint – Microsoft Office Macro Hardening Design 

  • Microsoft Office macro hardening 
  • Site: ASD’s Blueprint for Secure Cloud 

ASD Blueprint – Restrict Microsoft Office Macros 

  • Restrict Microsoft Office macros 
  • Site: ASD’s Blueprint for Secure Cloud 

GitHub Repositories and Templates 

Microsoft GitHub – ACSC Office Hardening Guidelines 

  • ACSC Office Hardening Guidelines (JSON) 
  • Site: GitHub – Microsoft 

Microsoft GitHub – OLE Prevention PowerShell Script 

  • OfficeMacroHardening-PreventActivationofOLE.ps1 
  • Site: GitHub – Microsoft 

Microsoft GitHub – ACSC Windows Hardening ASR Policy 

  • ACSC Windows Hardening Guidelines – Attack Surface Reduction policy (JSON) 
  • Site: GitHub – Microsoft 

GitHub – ACSC Essential 8 Office Hardening Module 

  • benjamin-robertson/acsc_e8_office_hardening 
  • Site: GitHub – Community 

Community and Technical Resources 

Reddit – Office 365 Community Discussion 

  • 365 Business Premium – GPO or config.office.com 
  • Site: Reddit – r/Office365 

Practical365 – Office Cloud Policy Service 

  • Block Macro Execution with Office Cloud Policy Service (OCPS) 
  • Site: Practical365 

Mr T-Bone’s Blog – Intune Office Policies 

  • How to use policies for Office apps in Intune 
  • Site: Mr T-Bone´s Blog 

Helge Klein – Blocking Office Macros 

  • Blocking Office Macros, Managing Windows & macOS via Intune 
  • Site: Helge Klein 

T-Minus365 – Deploy ASR Rules 

  • Deploy Attack Surface Reduction Rules from Microsoft Intune 
  • Site: T-Minus365 

Azure with Tom – Implementing ASR Policies 

  • Implementing Attack Surface Reduction Policies 
  • Site: Azure with Tom 

Additional Resources 

Microsoft Graph API – Graph Explorer 

  • Graph Explorer for API Testing 
  • Site: Microsoft Developer 

Microsoft 365 Defender Portal 

  • Microsoft 365 Defender Security Portal 
  • Site: Microsoft 365 Defender 

CISA – Disable VBA Macros Guidance 

  • Disable Visual Basic for Applications (VBA) Macros (CM0056) 
  • Site: Cybersecurity and Infrastructure Security Agency (CISA) 

CIAOPS Academy deprecation notification

Screenshot 2025-11-10 194840

The CIAOPS Academy has now reached the end of lts life. I will soon remove the ability to subscribe to any existing courses and aim to fully close it down within the next twelve (12) months. Existing subscribers will still be able to access any courses until full closure in December 2026, however no additional course will be added and existing courses will not be updated.

Why have I decided to do this? The main reasons are:

1. When I look at the metrics I see that well below 5% of course subscriber’s complete their course. Most complete nothing more than the first lesson.

2. Microsoft is changing the the M365 screens more and more regularly. People want courses to match the exact current displays in M365 and this would require an inordinate amount of work on my part refreshing each course as the interfaces continue to evolve and change.

3. In a world of AI, YouTube, etc people no longer want full courses. They instead, typically, consume content piecemeal and on demand. Few are willing to invest in a multi-lesson course it seems.

4. I rarely receive feedback on the existing course content or what people would like to see made available in new courses. People are looking elsewhere for their information.

For these and other reasons (e.g. increasing hosting costs) I have decided to fully shut down the CIAOPS Academy.

I will be moving all new content directly into the CIAOPS Patron Community (www.ciaopspatron.com) going forward. You can still sign up to my free Microsoft Team. You can use Robert.Agent to have all your M365 question answered directly via email.

In an evolving landscape where AI is rapidly commoditising knowledge, the CIAOPS Academy is losing relevancy and simply becoming too hard to maintain and I believe this is mirrored in fewer and fewer people consuming the course material.

All good things must come to and end and so it is for the CIAOPS Academy.

Configuring Exchange Online Mailbox Logging – Best Practices and Step-by-Step Guide

Important: Mailbox Auditing is Already ON by Default

Good news! Since 2019, Microsoft automatically enables mailbox auditing for all Exchange Online organizations. This means logging is already active for your mailboxes without requiring any manual configuration.

Should You Enable All Available Logging?

No, you should NOT enable all available logging. Here’s why:

  • Microsoft’s Recommendation: Use the default audit configuration, which Microsoft automatically manages and updates
  • Storage Impact: Audit logs consume storage space in each mailbox’s Recoverable Items folder (counts against the 30GB default limit)
  • Performance Consideration: Excessive logging can impact mailbox performance
  • Automatic Updates: Microsoft automatically adds new important actions to the default audit configuration as they’re released

What’s Logged by Default

The default configuration logs these critical actions:

ActionAdminDelegateOwner
Create (Calendar items)✓✓
HardDelete✓✓✓
MoveToDeletedItems✓✓✓
SendAs✓✓
SendOnBehalf✓✓
SoftDelete✓✓✓
Update✓✓✓
UpdateFolderPermissions✓✓✓
UpdateInboxRules✓✓✓

Step-by-Step Configuration Guide

Method 1: PowerShell (Recommended)

Step 1: Connect to Exchange Online PowerShell

Install-Module -Name ExchangeOnlineManagement
Connect-ExchangeOnline -UserPrincipalName admin@yourdomain.com

Step 2: Verify Organization-Wide Auditing is Enabled

Get-OrganizationConfig | Format-List AuditDisabled

Result should show False (meaning auditing is enabled)

Step 3: Check Current Mailbox Audit Status

# For a specific mailbox
Get-Mailbox -Identity "user@domain.com" | Format-List Name,AuditEnabled,DefaultAuditSet

# For all mailboxes
Get-Mailbox -ResultSize Unlimited | Format-Table Name,AuditEnabled,DefaultAuditSet

Step 4: Use Default Settings (Recommended)

# Restore default auditing for a mailbox that was customized
Set-Mailbox -Identity "user@domain.com" -DefaultAuditSet Admin,Delegate,Owner

Step 5: Only If Necessary – Customize Specific Actions

# Example: Add MailboxLogin tracking for owner actions
Set-Mailbox -Identity "user@domain.com" -AuditOwner @{Add="MailboxLogin"}

# Example: Set specific admin actions (overwrites defaults - not recommended)
Set-Mailbox -Identity "user@domain.com" -AuditAdmin MessageBind,FolderBind,HardDelete

Step 6: Configure Retention Period

# Default is 90 days, can extend up to 365 days (E5 license required for >180 days)
Set-Mailbox -Identity "user@domain.com" -AuditLogAgeLimit 180

# Apply to all mailboxes
Get-Mailbox -ResultSize Unlimited | Set-Mailbox -AuditLogAgeLimit 180

Step 7: Verify Configuration

# Check what actions are being audited
Get-Mailbox -Identity "user@domain.com" | Select-Object -ExpandProperty AuditAdmin
Get-Mailbox -Identity "user@domain.com" | Select-Object -ExpandProperty AuditDelegate
Get-Mailbox -Identity "user@domain.com" | Select-Object -ExpandProperty AuditOwner

Method 2: Microsoft 365 Admin Center (Limited Options)

Note: The GUI provides limited mailbox audit configuration options. Most settings require PowerShell.

To Search Audit Logs via GUI:

  1. Navigate to Microsoft Purview compliance portal
  2. Go to Audit in the left navigation
  3. Ensure audit log search is turned on (banner will appear if it’s not)
  4. Use the search interface to query audit logs
  5. Filter by:
    • Activities (e.g., “Mailbox activities”)
    • Date range
    • Users
    • File, folder, or site
  6. Export results as needed

To Export Mailbox Audit Logs via Classic EAC:

  1. Navigate to the Classic Exchange Admin Center
  2. Go to Compliance Management → Auditing
  3. Click “Export mailbox audit logs”
  4. Specify date range and recipients
  5. Submit the export request

Best Practices Summary

  1. Keep default auditing enabled – It’s already on and Microsoft manages it
  2. Don’t enable all actions – Avoid FolderBind and MessageBind for owners (creates excessive logs)
  3. Retention considerations:
    • Standard licenses: 180 days retention
    • E5 licenses: 1 year retention by default
    • 10-year retention available with additional licensing
  4. Monitor storage: Check Recoverable Items folder size periodically
  5. Use PowerShell for configuration: GUI options are limited
  6. Test before mass deployment: If customizing, test on pilot mailboxes first

When to Customize Auditing

Only customize mailbox auditing if you have specific compliance requirements such as:

  • Regulatory requirements for specific action tracking
  • Security investigation needs
  • Tracking mailbox login events (MailboxLogin)
  • Monitoring specific delegate activities

Understanding FolderBind and MessageBind Logging for Mailbox Owners

What FolderBind and MessageBind Actually Log

FolderBind

What it logs: Every time a mailbox folder is accessed or opened

  • Records when someone navigates to or opens any folder (Inbox, Sent Items, Deleted Items, custom folders, etc.)
  • Captures the folder GUID and path
  • Logs the timestamp, client IP address, and application used
  • For delegates, entries are consolidated (one record per folder per 24-hour period to reduce volume)
  • Important: Not consolidated for owners – every folder access creates a separate log entry

MessageBind

What it logs: Every time a message is viewed in the preview pane or opened

  • Records when someone reads or opens an individual email message
  • Captures the message subject and ItemID
  • Logs whether the message was previewed or fully opened
  • Records the client application and IP address
  • Note: For E5 licensed users, this is replaced by the more sophisticated MailItemsAccessed action

Why These Actions Are NOT Enabled for Owners by Default

1. Massive Log Volume

The Reality: A typical user might:

  • Access 20-50 folders per day during normal email activity
  • View 50-200+ messages daily
  • Generate thousands of audit entries weekly
  • Create up to 100,000+ audit entries annually per mailbox

2. Storage Impact

  • Audit logs are stored in the mailbox’s Recoverable Items folder (Audits subfolder)
  • Count against the 30GB default quota (or 100GB with holds)
  • Maximum 3 million items can be stored in the Audits subfolder
  • Heavy users could hit these limits within months

3. Performance Considerations

  • Every folder navigation and message view triggers a write operation
  • Can impact mailbox performance, especially for heavy email users
  • Increases server-side processing load
  • May slow down email client responsiveness

4. Signal-to-Noise Ratio

  • 99.9% of owner FolderBind/MessageBind events are legitimate daily activity
  • Makes it extremely difficult to identify suspicious activity
  • Investigation tools often filter out FolderBind by default because of the noise

Legitimate Scenarios for Enabling FolderBind/MessageBind for Owners

1. Insider Threat Detection

Use Case: Monitoring high-risk individuals or sensitive roles

  • Executives with access to M&A information
  • Employees on performance improvement plans or termination notice
  • Users with access to intellectual property or trade secrets
  • Detecting unusual access patterns (e.g., accessing old emails before resignation)

2. Compliance Requirements

Use Case: Specific regulatory mandates

  • Financial services requiring complete audit trails (SEC, FINRA)
  • Healthcare organizations tracking PHI access (HIPAA)
  • Government contractors with security clearance requirements
  • Legal hold scenarios requiring complete activity documentation

3. Forensic Investigations

Use Case: Post-incident analysis

  • Determining if a compromised account’s emails were actually read
  • Investigating data exfiltration attempts
  • Proving or disproving unauthorized access claims
  • Building timeline of activities during security incidents

4. Privileged Account Monitoring

Use Case: Enhanced monitoring for administrative accounts

  • Service accounts that shouldn’t have regular email activity
  • Shared mailboxes with sensitive information
  • Discovery mailboxes used for legal searches
  • Executive assistant mailboxes with delegated access

Best Practices If You Enable FolderBind/MessageBind for Owners

1. Selective Implementation

# Enable only for specific high-risk mailboxes
Set-Mailbox -Identity "CEO@company.com" -AuditOwner @{Add="FolderBind","MessageBind"}

# Create a list of VIP users
$VIPUsers = "CEO@company.com","CFO@company.com","Legal@company.com"
foreach ($user in $VIPUsers) {
    Set-Mailbox -Identity $user -AuditOwner @{Add="FolderBind","MessageBind"}
}

2. Increase Retention Period

# Extend audit log retention to accommodate increased volume
Set-Mailbox -Identity "CEO@company.com" -AuditLogAgeLimit 365

3. Monitor Storage Impact

# Check audit folder size regularly
Get-MailboxFolderStatistics -Identity "CEO@company.com" -FolderScope RecoverableItems | 
    Where-Object {$_.Name -eq 'Audits'} | 
    Format-List FolderPath,FolderSize,ItemsInFolder

4. Implement Automated Analysis

  • Export logs to SIEM systems for pattern analysis
  • Set up alerts for unusual access patterns
  • Use machine learning to baseline normal behavior
  • Focus on deviations from typical patterns

5. Consider Alternative Solutions

  • For E5 Users: Use MailItemsAccessed instead (more intelligent, less noisy)
  • Microsoft Defender: Use insider risk management policies
  • Third-party tools: Consider specialized insider threat detection solutions
  • DLP policies: Focus on preventing data loss rather than tracking all access

The MailItemsAccessed Alternative (E5 Licenses)

For organizations with E5 licenses, MailItemsAccessed is a superior alternative that:

  • Intelligently aggregates similar activities (reduces noise by 80-90%)
  • Provides both sync and bind operation tracking
  • Includes deduplication (removes duplicate entries within 1-hour windows)
  • Records InternetMessageId for precise message tracking
  • Better suited for forensic investigations
  • Automatically enabled for E5 users

Summary Recommendation

Enable FolderBind/MessageBind for owners ONLY when:

  1. You have specific compliance or security requirements
  2. Monitoring high-risk individuals or during investigations
  3. You have the resources to analyze the massive data volume
  4. Storage and performance impacts have been evaluated
  5. You’ve implemented automated analysis tools

Otherwise: Stick with the default configuration and use alternative methods like DLP policies, insider risk management, and the MailItemsAccessed action (for E5 users) for more effective security monitoring.

Implementing a Phased Rollout of Conditional Access Policies Requiring Device Compliance in Microsoft 365

Overview

Implementing Conditional Access policies requiring device compliance in Microsoft 365 requires careful planning and a phased approach to minimize disruption while maintaining security. This comprehensive guide provides step-by-step instructions specifically tailored for small businesses.

1. Prerequisites and Initial Setup

Required Licenses

  • Microsoft Entra ID P1 or P2 – Required for Conditional Access
  • Microsoft Intune – Required for device compliance management
  • Microsoft 365 Business Premium or higher for small businesses

Essential Preparations

  1. Configure Emergency Access Accounts
    • Create at least two emergency access (break-glass) accounts
    • Exclude these accounts from ALL Conditional Access policies
    • Store credentials securely and separately
  2. Create Device Compliance Policies First
    • Define minimum OS version requirements
    • Set encryption requirements
    • Configure password/PIN requirements
    • Establish jailbreak/root detection settings
  3. Enable User Registration for MFA
    • Allow users to register authentication methods before enforcing policies
    • Communicate registration requirements to all users

2. Phased Rollout Strategy

Phase 1: Foundation (Weeks 1-2)

Objective: Establish baseline security and prepare infrastructure

  1. Create policies in Report-Only Mode
  2. Block legacy authentication protocols
  3. Secure the MFA registration page
  4. Target privileged accounts first with phishing-resistant MFA

Phase 2: Pilot Testing (Weeks 2-4)

Objective: Test with limited user groups

Pilot Group Selection

  • Start with 5-10% of your organization
  • Include IT staff and willing early adopters
  • Avoid executives and VIPs initially
  • Ensure representation from different departments

Creating the Policy in Report-Only Mode

  1. Navigate to Microsoft Entra admin center → Conditional Access → Policies
  2. Create new policy with these settings:
    • Name: “Require Device Compliance – Pilot”
    • Users: Select pilot group
    • Cloud apps: Start with non-critical apps
    • Grant: Require device to be marked as compliant
    • Enable policy: Report-only

Phase 3: Gradual Expansion (Weeks 4-8)

Objective: Progressively include more users and applications

Automated Phased Rollout Approach

If using the Conditional Access Optimization Agent (requires Microsoft Security Copilot):

  1. The agent automatically creates a 5-phase rollout plan
  2. Groups are assigned based on risk and impact analysis
  3. Automatic progression between phases based on success metrics
  4. Built-in safeguards pause rollout if sign-in success rate drops below 90%

Manual Phased Rollout Approach

  1. Phase 3a: Add 25% more users (low-risk departments)
  2. Phase 3b: Add another 25% (medium-risk departments)
  3. Phase 3c: Add remaining standard users
  4. Phase 3d: Include executives and VIPs
  5. Phase 3e: Apply to all cloud applications

Phase 4: Full Deployment (Week 8+)

  1. Switch policy from Report-only to On
  2. Monitor for 2 weeks before removing report-only policies
  3. Clean up redundant or test policies

3. Monitoring Strategies

Real-Time Monitoring Tools

A. Sign-in Logs Analysis

  1. Navigate to Microsoft Entra admin center → Monitoring & health → Sign-in logs
  2. Filter by:
    • Conditional Access status
    • Failure reasons
    • Affected users
  3. Review the Report-only tab for policy impact without enforcement

B. Conditional Access Insights Workbook

Requires Azure Monitor subscription:

  • Provides aggregate view of policy impacts
  • Identifies potential issues before enforcement
  • Shows user impact analysis

C. Device Compliance Dashboard

  1. Access via Intune admin center → Reports → Device compliance
  2. Monitor:
    • Compliance status by policy
    • Non-compliant device trends
    • Error patterns in compliance evaluation

Key Metrics to Track

  • Sign-in success rate: Should remain above 90%
  • Device compliance rate: Target 95%+ before full enforcement
  • Help desk tickets: Monitor for unusual spikes
  • User productivity impact: Track application access patterns

4. Rollback Procedures

Immediate Rollback Options

Option 1: Disable the Policy

  1. Navigate to the Conditional Access policy
  2. Change Enable policy from “On” to “Off”
  3. Takes effect within minutes for new sign-ins

Option 2: Switch to Report-Only Mode

  1. Edit the policy
  2. Change Enable policy to “Report-only”
  3. Maintains visibility while removing enforcement

Option 3: Exclude Affected Users/Groups

  1. Edit policy → Assignments → Users
  2. Under Exclude, add affected users or groups
  3. Use sparingly and temporarily

Grace Period Configuration

Configure grace periods in Intune compliance policies:

  1. Navigate to Intune admin center → Devices → Compliance policies
  2. Edit policy → Actions for noncompliance
  3. Set grace period (recommended: 3-7 days for initial rollout)
  4. Users maintain access during grace period while fixing compliance issues

Recovery from Deleted Policies

  • Deleted policies can be recovered within 30 days
  • Access soft-deleted policies through Microsoft Entra admin center
  • Restore maintains original configuration and assignments

5. Best Practices and Recommendations

Communication Strategy

  1. Pre-deployment: 2 weeks advance notice with requirements
  2. During pilot: Weekly updates to pilot users
  3. Rollout phases: 48-hour notice before including new groups
  4. Post-deployment: Success confirmation and support resources

Testing Checklist

  • ✓ Test with multiple device platforms (Windows, iOS, Android)
  • ✓ Verify enrollment process for new devices
  • ✓ Confirm excluded accounts remain accessible
  • ✓ Test rollback procedures in development environment
  • ✓ Validate help desk escalation procedures

Common Pitfalls to Avoid

  1. Not excluding emergency accounts – Can result in complete lockout
  2. Skipping report-only mode – Misses opportunity to identify issues
  3. Moving too quickly between phases – Insufficient time to identify problems
  4. Inadequate user communication – Leads to confusion and resistance
  5. Not monitoring device check-in intervals – Compliance updates may be delayed

PowerShell Monitoring Example


# Connect to Microsoft Graph
Connect-MgGraph -Scopes "Policy.Read.All"

# Get all Conditional Access policies
$policies = Get-MgIdentityConditionalAccessPolicy

# Filter for device compliance policies
$compliancePolicies = $policies | Where-Object { 
    $_.GrantControls.BuiltInControls -contains "compliantDevice" 
}

# Display policy status
$compliancePolicies | Format-Table DisplayName, State, CreatedDateTime

Implementing Risk-Based Conditional Access Policies for Small Business

Risk-based Conditional Access policies provide adaptive security that automatically adjusts authentication requirements based on the risk level of sign-ins and user behavior, helping you maintain an optimal balance between security and productivity.

Prerequisites and Licensing

  • Microsoft Entra ID P2 license required for risk-based policies (includes Identity Protection)
  • Microsoft 365 Business Premium includes Conditional Access features for small businesses
  • Users must be registered for Multi-Factor Authentication (MFA) before policy enforcement
  • Configure trusted network locations to reduce false positives

Step-by-Step Implementation Guide

Phase 1: Foundation Setup (Week 1)

  1. Create Emergency Access Accounts
    • Set up at least two break-glass accounts excluded from all policies
    • These prevent complete lockout if policies are misconfigured
  2. Start with Report-Only Mode
    • Deploy all new policies in report-only mode first
    • Monitor for at least 7-14 days to understand impact
    • Review sign-in logs to identify potential issues

Phase 2: Sign-in Risk Policy Configuration

  1. Navigate to Microsoft Entra admin center > Conditional Access
  2. Create new policy: “Require MFA for risky sign-ins”
  3. Configure settings:
    • Users: Include all users, exclude emergency accounts
    • Cloud apps: All cloud apps
    • Conditions > Sign-in risk: Select Medium and High
    • Grant: Require multi-factor authentication
    • Session: Sign-in frequency – Every time
    • Enable policy: Report-only (initially)

Phase 3: User Risk Policy Configuration

  1. Create new policy: “Require password change for high-risk users”
  2. Configure settings:
    • Users: Include all users, exclude emergency accounts
    • Cloud apps: All cloud apps
    • Conditions > User risk: Select High
    • Grant: Require password change + Require MFA
    • Enable policy: Report-only (initially)

Microsoft’s Recommended Risk Levels for Small Business

  • Sign-in Risk: Require MFA for Medium and High risk levels
    • Provides security without excessive user friction
    • Allows self-remediation through MFA completion
  • User Risk: Require secure password change for High risk only
    • Prevents account lockouts from overly aggressive policies
    • Users can self-remediate compromised credentials

Balancing Security and Productivity

Enable Self-Remediation

  • Sign-in risks: Users complete MFA to prove identity and continue working
  • User risks: Users perform secure password change without admin intervention
  • Reduces helpdesk tickets and minimizes productivity disruption

Progressive Deployment Strategy

  1. Pilot Group (Week 1-2)
    • Start with IT staff and power users
    • Monitor and gather feedback
    • Adjust risk thresholds if needed
  2. Phased Rollout (Week 3-4)
    • Expand to departments gradually
    • Provide user communication and training
    • Document self-remediation procedures
  3. Full Deployment (Week 5+)
    • Switch policies from Report-only to On
    • Monitor sign-in logs for blocked legitimate users
    • Fine-tune based on real-world usage

PowerShell Implementation Example

Import-Module Microsoft.Graph.Identity.SignIns

# Create Sign-in Risk Policy
$signInRiskPolicy = @{
    displayName = "Require MFA for risky sign-ins"
    state = "enabledForReportingButNotEnforced"
    conditions = @{
        signInRiskLevels = @("high", "medium")
        applications = @{
            includeApplications = @("All")
        }
        users = @{
            includeUsers = @("All")
            excludeGroups = @("emergency-access-group-id")
        }
    }
    grantControls = @{
        operator = "OR"
        builtInControls = @("mfa")
    }
    sessionControls = @{
        signInFrequency = @{
            isEnabled = $true
            type = "everyTime"
        }
    }
}

New-MgIdentityConditionalAccessPolicy -BodyParameter $signInRiskPolicy

Key Monitoring and Success Metrics

  • Sign-in Success Rate: Should remain above 95% for legitimate users
  • MFA Prompt Frequency: Monitor for excessive prompting that impacts productivity
  • Risk Detection Accuracy: Review false positive rates weekly
  • Self-Remediation Rate: Track percentage of users successfully self-remediating
  • Helpdesk Tickets: Should decrease after initial deployment

Best Practices for Small Business

  1. Start Conservative: Begin with High risk only, then add Medium risk after validation
  2. Communicate Clearly: Provide user guides explaining why MFA prompts occur
  3. Enable Modern Authentication: Block legacy authentication to prevent policy bypass
  4. Regular Reviews: Analyze risk detection patterns monthly and adjust as needed
  5. Document Exceptions: Maintain clear records of any policy exclusions
  6. Test Rollback Procedures: Know how to quickly disable policies if issues arise

Step-by-Step Guide: Setting Up Entra ID Conditional Access for Small Businesses

Understanding Conditional Access

Conditional Access is Microsoft’s Zero Trust policy engine that evaluates signals from users, devices, and locations to make automated access decisions and enforce organizational policies. Think of it as intelligent “if-then” statements: If a user wants to access a resource, then they must complete an action (like multifactor authentication).

For SMBs using Microsoft 365 Business Premium, Conditional Access provides enterprise-grade security without requiring complex infrastructure, protecting your organization from 99.9% of identity-based attacks.

Prerequisites

  • License Requirements: Microsoft 365 Business Premium (includes Entra ID P1) or Microsoft 365 E3/E5
  • Admin Role: Conditional Access Administrator or Global Administrator privileges
  • Preparation: Ensure all users have registered for MFA before implementing policies
  • Emergency Access Account: Create at least one break-glass account excluded from all policies

Phase 1: Initial Setup and Planning (Week 1)

Step 1: Turn Off Security Defaults

  1. Navigate to Microsoft Entra admin center (entra.microsoft.com)
  2. Go to Entra ID → Properties
  3. Select Manage security defaults
  4. Toggle Security defaults to Disabled
  5. Select My organization is using Conditional Access as the reason
  6. Click Save

Important: Only disable security defaults after you’re ready to create Conditional Access policies immediately.

Step 2: Create Emergency Access Accounts

  1. Create two cloud-only accounts with complex passwords
  2. Assign Global Administrator role to both accounts
  3. Store credentials securely (separate locations)
  4. Document these accounts for emergency use only
  5. Exclude these accounts from ALL Conditional Access policies

Step 3: Access the Conditional Access Portal

  1. Sign in to entra.microsoft.com
  2. Navigate to Entra ID → Conditional Access
  3. Select Policies to view the main dashboard

Phase 2: Create Baseline Policies (Week 1-2)

Policy 1: Require MFA for All Users

  1. Click New policy from templates
  2. Select Require multifactor authentication for all users template
  3. Name your policy: “Baseline: MFA for All Users”
  4. Under Assignments:
    • Users: All users
    • Exclude: Select your emergency access accounts
  5. Under Target resources:
    • Select All resources (formerly ‘All cloud apps’)
  6. Under Access controls → Grant:
    • Select Require multifactor authentication
  7. Set Enable policy to Report-only
  8. Click Create

Policy 2: Block Legacy Authentication

  1. Click New policy from templates
  2. Select Block legacy authentication template
  3. Name your policy: “Security: Block Legacy Authentication”
  4. Under Assignments:
    • Users: All users
    • Exclude: Emergency access accounts
  5. Under Conditions → Client apps:
    • Configure: Yes
    • Select Exchange ActiveSync clients and Other clients
  6. Under Access controls → Grant:
    • Select Block access
  7. Set Enable policy to Report-only
  8. Click Create

Policy 3: Require MFA for Administrators

  1. Click New policy from templates
  2. Select Require multifactor authentication for admins template
  3. Name your policy: “Security: MFA for Admin Roles”
  4. Under Assignments:
    • Users: Select users and groups
    • Select Directory roles
    • Choose all administrative roles
    • Exclude: Emergency access accounts
  5. Under Access controls → Grant:
    • Select Require multifactor authentication
  6. Set Enable policy to Report-only
  7. Click Create

Phase 3: Testing and Validation (Week 2)

Step 1: Use the What If Tool

  1. Navigate to Conditional Access → Policies → What If
  2. Enter test scenarios:
    • Select a test user
    • Choose target applications
    • Set device platform and location
  3. Click What If to see which policies would apply
  4. Review both “Policies that will apply” and “Policies that will not apply”
  5. Document results for each test scenario

Step 2: Monitor Report-Only Mode

  1. Leave policies in Report-only mode for at least 7 days
  2. Navigate to Entra ID → Sign-in logs
  3. Filter by Conditional Access = Report-only
  4. Review impacts:
    • Check for “Report-only: Success” entries
    • Investigate any “Report-only: Failure” entries
    • Look for “Report-only: User action required” entries
  5. Address any issues before enforcement

Step 3: Pilot Testing

  1. Create a pilot group with 5-10 users
  2. Create a duplicate policy targeting only the pilot group
  3. Set this pilot policy to On (enforced)
  4. Monitor for 3-5 days
  5. Gather feedback from pilot users
  6. Address any issues identified

Phase 4: Production Deployment (Week 3)

Step 1: Enable Policies

  1. After successful testing, return to each policy
  2. Change Enable policy from Report-only to On
  3. Start with one policy at a time
  4. Wait 2-4 hours between enabling each policy
  5. Monitor sign-in logs after each activation

Step 2: Communicate to Users

  1. Send announcement email before enforcement
  2. Include:
    • What’s changing and when
    • Why it’s important for security
    • What users need to do (register for MFA)
    • Support contact information
  3. Provide MFA registration instructions
  4. Schedule optional training sessions

Phase 5: Advanced Policies (Week 4+)

Optional: Require Compliant Devices

Only implement after basic policies are stable

  1. Create new policy: “Security: Require Compliant Devices”
  2. Target high-value applications first
  3. Under Grant controls:
    • Select Require device to be marked as compliant
  4. Test thoroughly before enforcement

Optional: Location-Based Access

  1. Define trusted locations (office IP addresses)
  2. Create policies based on location:
    • Block access from specific countries
    • Require MFA when not in trusted location

Troubleshooting Common Issues

Users Can’t Sign In

  • Check sign-in logs for specific error messages
  • Use What If tool to identify blocking policies
  • Verify user has completed MFA registration
  • Temporarily exclude user while investigating

Policy Not Applying

  • Verify policy is set to “On” not “Report-only”
  • Check assignment conditions match user scenario
  • Review excluded users and groups
  • Wait 1-2 hours for policy propagation

Emergency Rollback

  1. Navigate to problematic policy
  2. Set Enable policy to Off
  3. Or exclude affected users temporarily
  4. Document issue for resolution
  5. Re-enable after fixing configuration

Training Resources

Microsoft Learn Modules (Free)

Documentation and Guides

Video Resources

Best Practices Summary

  • ✅ Always maintain emergency access accounts excluded from all policies
  • ✅ Test every policy in Report-only mode for at least 7 days
  • ✅ Use the What If tool before and after creating policies
  • ✅ Start with Microsoft’s template policies – they represent best practices
  • ✅ Document all policies and their business justification
  • ✅ Monitor sign-in logs regularly for anomalies
  • ✅ Communicate changes to users before enforcement
  • ✅ Have a rollback plan for every policy
  • ✅ Implement policies gradually, not all at once
  • ✅ Review and update policies quarterly

Microsoft Defender and Purview Suites for M365 Business Premium – Detailed Breakdown

Microsoft has introduced two new add-on suites for Microsoft 365 Business Premium – the Defender Suite and the Purview Suite – to bring enterprise-grade security and compliance features to small and mid-sized businesses (SMBs) at an affordable price[1][2]. Below, we’ll break down each suite’s included services, compare them to what Business Premium already offers, and assess their value for an SMB. Real-world examples are provided to illustrate how these features can be used effectively in a small business setting.

Business Premium Baseline: What’s Included Already

Microsoft 365 Business Premium (≈$22 per user/month in the U.S. for annual subscriptions) is an SMB-focused bundle that already includes a solid foundation of productivity, security, and device management features. Key security/compliance features built into Business Premium (base license) are:

  • Azure AD Premium P1 (Microsoft Entra ID P1) – gives advanced identity management like Conditional Access policies and self-service password reset[3]. (Entra ID P2 is not included in base; more on that later.)
  • Microsoft Defender for Business – an endpoint security solution providing next-gen antivirus and endpoint detection and response (EDR) on PCs and mobile devices[4]. This is essentially a version of Defender for Endpoint tailored to SMBs; it includes robust malware protection and automated remediation, but lacks some advanced features like threat hunting that are in Plan 2.
  • Microsoft Defender for Office 365 Plan 1 – provides email and collaboration security such as Safe Attachments and Safe Links for phishing/malware protection in Exchange, OneDrive, SharePoint, and Teams[3]. (Plan 1 is included; Plan 2 features are not.)
  • Core Microsoft Purview Compliance features – Business Premium offers basic compliance tools:
    • Information Protection (AIP Plan 1) for manual sensitivity labeling and encryption of documents/emails[3][3].
    • Office 365 Data Loss Prevention (DLP) for Exchange Online, SharePoint, and OneDrive (but not Teams chats or device endpoints)[3][3]. This lets admins create policies to prevent sensitive info (e.g. credit card numbers) from being emailed or shared in documents.
    • Basic eDiscovery and Audit – content search and ability to place simple legal holds on mailboxes, plus audit log retention for 90 days[3][3]. This covers standard needs to find information across M365 and track user activities, but without advanced analytics.
    • Basic retention policies for data (manual setup of retention tags in Exchange/SharePoint)[3].

In short, Business Premium’s base license provides a “secure productivity foundation” for SMBs[3]. It has strong baseline security (device management and basic threat protection) and some compliance capabilities, sufficient for many smaller organizations’ needs. However, more advanced, enterprise-grade features – like proactive threat hunting, AI-driven identity protection, or comprehensive data governance – are not included in the base plan[3]. To get those, SMBs traditionally had to upgrade to costly Enterprise E5 licenses or layer multiple standalone products. This is where the new add-on suites come in.

Microsoft Defender Suite for Business Premium (Security Add-on)

Microsoft Defender Suite for Business Premium is a security-focused add-on that layers full E5-level threat protection onto Business Premium. Priced at $10 per user/month (U.S.), it includes five advanced security tools that were formerly found only in Microsoft 365 E5 (Security) subscriptions[2][1]:

  • Microsoft Entra ID P2 (Azure AD Premium P2): Upgrades your identity management to include risk-based Conditional Access, Identity Protection, and advanced identity governance. This means the system uses Microsoft’s trillions of signals to detect and automatically block or challenge risky sign-ins (e.g. atypical locations or known breached credentials) in real time[5]. It also includes features like Privileged Identity Management (PIM) and access reviews (helping enforce least privilege by time-bound admin access). Base Business Premium has Entra ID P1, which supports Conditional Access but does not do automated risk-based policies or PIM – with P2, an SMB gets the same identity security as an enterprise[5][6]. Example: if a hacker runs a password spray attack (trying common passwords on many accounts), Entra ID P2’s Identity Protection can detect the suspicious behavior and lock out the attempts, preventing a breach without IT needing to intervene[5].
  • Microsoft Defender for Endpoint Plan 2 (MDE P2): Enhances endpoint security beyond the included “Defender for Business” capabilities. With this, SMBs get industry-leading endpoint detection and response with features like threat advanced hunting, custom threat detection rules, detailed threat analytics, and up to 180 days of timeline retention for investigations[4][4]. Base Business Premium already provides next-gen antivirus and automated remediation on endpoints; the add-on unlocks advanced EDR: analysts can proactively hunt for threats using queries (KQL), detect advanced attacks, and even protect IoT devices[4][4]. It also adds capabilities like device-based Conditional Access (tying endpoint risk score to access decisions) and attack surface reduction rules. Example: With MDE P2, a small IT provider can query all devices for traces of a new ransomware indicator and quickly identify which PC is infected – something not possible with just the base antivirus alone.
  • Microsoft Defender for Office 365 Plan 2: Extends email and collaboration protection with Automated investigation & response, Threat Explorer, and Attack Simulation Training[5][1]. Base Business Premium includes Plan 1 (anti-phishing, safe links, safe attachments). Plan 2 adds the ability to run realistic phishing simulation campaigns to train employees in a safe environment[5], and to automatically investigate and remediate phishing attacks (e.g. auto-quarantine all emails malware after the first alert). It also provides rich reporting (who clicked what, etc.) and tools to analyze attacks after they happen. Example: An SMB can conduct a phishing simulation for its staff – say, sending a fake “reset your password” email – using built-in templates. Those who click the dummy link are flagged for training. This proactive training (available only with Plan 2) helps reduce real-world click rates, as one construction firm found it crucial after several employees fell for actual phishing emails (a scenario where Plan 2’s training could build awareness).
  • Microsoft Defender for Identity: A cloud-based tool that monitors on-premises Active Directory signals (if the business has local servers or domain controllers) to detect threats like lateral movement, DC attacks (e.g. Pass-the-Hash, Golden Ticket attacks). It’s essentially an Identity Threat Detection & Response (ITDR) sensor for your directory services[4][4]. Most small businesses with solely cloud identities might not use this, but those with hybrid setups benefit. Base Business Premium has no equivalent for on-prem AD monitoring – this is an added layer of defense against insider attacks or network intrusions targeting identity infrastructure. Example: A manufacturing SMB with a legacy AD server can catch suspicious behavior – Defender for Identity might alert if an attacker inside the network is trying to replicate domain controller credentials, giving early warning of a breach[4][4].
  • Microsoft Defender for Cloud Apps (formerly MCAS): A Cloud Access Security Broker (CASB) solution that gives visibility and control over SaaS app usage[5]. It can discover shadow IT (e.g. employees using unauthorized cloud storage or AI tools), monitor data in 3rd-party cloud apps, and enforce policies (like blocking downloads or applying DLP to those apps)[5][4]. Base Business Premium does not include a CASB, so SMBs often had zero visibility into, say, an employee using personal Dropbox or ChatGPT with company data. With this add-on, SMB IT can see all cloud apps in use and set risk policies. Example: A small consulting firm discovers via Defender for Cloud Apps that several employees are uploading client data to personal Google Drive accounts – a major data risk. They use the tool to block unapproved cloud storage and coach users to use OneDrive instead[5]. It can even apply real-time controls, like blocking risky file downloads from generative AI platforms (e.g. stop users from feeding confidential info into an AI chatbot web app)[4].

How Defender Suite Differs from Business Premium Base: Essentially, Defender Suite fills all the “gaps” in Business Premium’s security:

  • Identities: Base has Entra ID P1 (static policies), add-on gives P2 (adaptive risk-based policies, PIM)[5].
  • Endpoints: Base has Defender for Business (EDR without advanced hunt), add-on gives full Defender for Endpoint P2[4].
  • Email/Collab: Base has Defender for O365 P1, add-on gives P2 with automation & training[5].
  • Cloud Apps: Base has none, add-on includes CASB[5].
  • Threat Analytics: The combined XDR capability of correlating signals across identity, endpoint, email, and SaaS is realized only with the add-on. In other words, Defender Suite turns Business Premium into a unified XDR platform like an enterprise SOC would have[4][1].

Value for SMB: For $10/user, the Defender Suite is highly cost-effective. Buying these components individually would total around $30-$50+ per user (e.g. Entra P2 ~$6, Defender Endpoint P2 ~$5, Defender O365 P2 ~$6, etc.) – Microsoft cites about $47.20 if bought standalone vs $10 in the suite (≈ 68% savings)[1][1]. More importantly, SMBs face the same threats as enterprises (phishing, ransomware, credential attacks), but often lack the tools or full-time specialists. This add-on gives “big company” defenses in an integrated, easy-to-manage way[2][2]. For example, instead of juggling one vendor for email security, another for endpoint, etc., an SMB IT admin gets one unified Microsoft 365 security dashboard with all signals, making threat response faster and simpler[2].

Real-world SMB scenario: Consider a 20-person accounting firm handling sensitive financial data. With Business Premium alone, they get basic protection, but they still worry about things like business email compromise or malware sneaking in. By adding the Defender Suite, they dramatically boost their security: Defender for Office 365 P2 catches an employee’s risky click on a phishing email and automatically isolates the affected mailbox; Defender for Endpoint P2 flags and quarantines a strange PowerShell script on a PC before ransomware can execute; Entra ID P2 forces MFA re-authentication for a user sign-in coming from an unusual location (stopping a possible stolen password login)[4][4]. All these defenses work in concert, minimizing the chances of a breach that could be devastating for a small firm. Given the relatively low cost, the Defender Suite add-on often represents a very good value for SMBs that need stronger cyber defenses, especially those in sectors like finance, healthcare, or any handling sensitive data.

Microsoft Purview Suite for Business Premium (Compliance Add-on)

Microsoft Purview Suite for Business Premium is a compliance and data protection-focused add-on that brings the full range of Microsoft’s E5 compliance & information governance features to an SMB. It costs $10 per user/month and includes a comprehensive set of Microsoft Purview capabilities[1][2]. These go far beyond the base Business Premium’s limited compliance tools, enabling an SMB to protect and govern data just like an enterprise. The suite’s key components are:

  • Microsoft Purview Information Protection (Premium) – Extends sensitivity labeling and data classification with auto-labeling and encryption enforcement. In Business Premium, you can manually tag documents or emails as “Confidential” and apply encryption; with the Purview add-on, you can automatically detect sensitive content (e.g. a document containing a Social Security number or client health data) and have the system label and protect it in real-time[3][3]. It also includes Microsoft Purview Message Encryption (to easily send encrypted emails externally) and Customer Key (bring your own encryption keys for M365 data)[5][5]. Example: A small law firm can configure auto-labeling so that any file containing the keyword “Attorney-Client Privilege” or any credit card number is automatically labeled “Highly Sensitive” and encrypted. Even if an employee mistakenly emails that file externally, only authorized recipients can open it thanks to the attached encryption[3][3].
  • Microsoft Purview Data Loss Prevention (DLP) – Expands DLP beyond email/Documents to cover endpoints and Teams. Base Business Premium’s DLP can stop a sensitive email or document in SharePoint from being shared; the add-on enables endpoint DLP (monitoring and blocking sensitive data copied to USB drives, printed, or uploaded from a device) and extends DLP policies to Microsoft Teams chat conversations[3][3]. Example: With Purview DLP, a health clinic can ensure that staff cannot copy patient records to a USB stick or paste them into a Teams message. If someone tries to, the system will block it and log the attempt[3]. This helps prevent accidental leaks or malicious exfiltration of sensitive data (like medical info or credit card numbers), across all channels.
  • Microsoft Purview Insider Risk Management – Provides tools to detect and investigate potential insider threats. It uses behavioral analytics to flag risky activities by users, such as an employee downloading unusually large amounts of data, multiple file deletions, or attempts to forward sensitive info outside[5][3]. It intentionally anonymizes user identities in its dashboard until a certain risk threshold is met (to preserve privacy)[3]. Base Business Premium has no insider risk solution. Example: An SMB in design services notices via Insider Risk Mgmt that one of their designers downloaded 500 files in a day and attempted to upload them to a personal cloud account – a red flag the person may be preparing to leave and take IP with them. The system alerts IT, who can investigate and intervene before a data theft incident occurs[5][3].
  • Microsoft Purview Communication Compliance – Monitors internal communications (Teams, Exchange email, even Yammer) for policy violations like harassment, inappropriate language, or sharing of sensitive info[5][3]. In an SMB without a large HR or compliance team, this tool can automatically flag problematic communications. Base Business Premium doesn’t include this. Example: A 20-person company can set up a policy to detect harassment or discriminatory language in Teams chats. If an employee uses offensive language in a Teams channel, a compliance officer (or owner) is alerted with a snippet of the conversation[3]. This helps SMBs maintain a professional, safe work environment and meet workplace compliance standards without manually reading chats.
  • Microsoft Purview Records Management & Data Lifecycle Management – Offers advanced retention and records management capabilities. While Business Premium allows basic retention policies, the Purview suite lets you classify certain content as official records, apply retention labels with event-based retention (e.g. start a 7-year retention when a project closes or an employee leaves), and require dispositions (reviews before deletion)[3][3]. Example: A small investment advisory firm is legally required to keep client communications for 7 years. With Purview, they create a retention label “Client Record – 7yr” and apply it to all client email folders. All emails are then automatically retained for 7 years (and can’t be deleted sooner), helping them comply with regulations without manual admin work[3].
  • Microsoft Purview eDiscovery (Premium) – Greatly enhances the ability to respond to legal or investigative inquiries. Base Business Premium has Standard eDiscovery (basic search and hold). eDiscovery Premium offers an end-to-end workflow: case management, the ability to search across mailboxes, Teams, SharePoint with advanced filters, place content on hold, perform OCR text recognition, thread Teams chats, use relevance analytics to cull down data, and export results with auditing[3][3]. It essentially lets an SMB handle litigation-related document discovery in-house, similar to what large enterprises do. Example: A 50-person company gets an unexpected lawsuit and needs to gather all communications from certain employees over the past year. With eDiscovery Premium, their IT admin can create a case, search all email and Teams chats by keywords and date range, and quickly export the findings for legal counsel[3]. This could save significant time and outsourcing costs – bringing a capability in-house that normally only big firms have.
  • Microsoft Purview Audit (Premium) – Extends the audit log capabilities by keeping audit logs for up to 1 year (or more) and logging more events (like exactly who viewed or accessed a specific document, mailbox, or item)[3]. Base audit only retains 90 days and might miss certain detailed events. Audit Premium is invaluable for forensic investigations after an incident. Example: After a suspected data leak, an SMB can use Audit (Premium) to trace back an incident – e.g. see if a particular file was accessed or exported by a user, even 8 months ago, since the logs are retained[3]. That level of detail can provide evidence for an investigation or regulatory response that wouldn’t be available with standard logs.
  • Microsoft Purview Compliance Manager – While available in base in a limited form, the full suite gives the full Compliance Manager toolset: templates for various regulations (GDPR, HIPAA, ISO 27001, etc.), an assessment dashboard, and improvement actions tailored for your tenant[3]. This acts like a virtual consultant, showing where you meet or fall short of compliance requirements and suggesting steps to improve. Example: An SMB in healthcare can load the HIPAA template in Compliance Manager and instantly see a checklist of controls they should implement (e.g. enable DLP for certain data, enforce MFA, etc.)[3]. As they implement each recommendation, it checks off and improves their compliance score. This helps a small team manage complex regulations systematically.
  • (New) Microsoft Purview Data Security Posture Management (DSPM) for AI – A new capability mentioned for AI oversight[5]. It helps monitor how AI applications (like Microsoft 365 Copilot or even third-party generative AI) are accessing sensitive data, with real-time alerts for risky behavior and enforcement of policies (like blocking an AI from seeing certain content)[5]. Example: If an employee tries to have an AI bot summarize a file containing customer SSNs, DSPM for AI could flag or block that operation. This is forward-looking for SMBs preparing to adopt AI responsibly.

How Purview Suite Differs from Business Premium Base: In summary, the Purview Suite unlocks all the advanced compliance features that Business Premium lacks:

  • Broader DLP: from just emails/SharePoint to Teams chats and devices[3][3].
  • Smarter labeling: from just manual labels to auto-classification and enforcement (with encryption, etc.)[3][3].
  • Insider Risk & Comm Monitoring: none in base, fully available with suite[3][3].
  • Records Management: basic retention vs advanced records declarations and event-based retention[3].
  • Discovery & Audit: basic vs Premium eDiscovery and long-term audit logs[3][3].
  • Compliance Manager: base access vs full templates and analytics[3].

In effect, the Purview add-on transforms Business Premium into the equivalent of Microsoft 365 E5 Compliance for an SMB[3][3].

Value for SMB: For organizations in regulated industries (financial services, healthcare, legal, government contractors, etc.), the Purview Suite provides immense value. It allows a small business to enforce data protections and privacy controls on par with a Fortune 500 company, without hiring an army of compliance staff or buying multiple solutions. At $10/user, it’s much cheaper than third-party compliance tools (which might be needed for DLP or eDiscovery if one doesn’t have this). It’s also far cheaper than upgrading to Microsoft 365 E5 (which can cost ~$57/user) just to get these features – Business Premium ($22) + Purview ($10) totals around $32, nearly half the cost of E5, with almost the same compliance benefits[1][1]. And if both security and compliance are needed, the combined bundle at $15 makes it ~$37 total, still much lower cost than enterprise plans (while staying within the 300-user SMB licensing limit)[5].

Real-world SMB scenario: Imagine a small medical clinic (50 employees) handling patient records. With Business Premium alone, they can label documents as sensitive and have some basic DLP on email, but an employee could still, say, download a bunch of patient files to a personal device undetected. After adding the Purview Suite, the clinic gains fine-grained control: endpoint DLP blocks a nurse from saving patient data to an unencrypted USB drive; auto-labeling ensures any document containing patient insurance numbers is tagged “PHI – Confidential” and encrypted; Communication Compliance flags if a staff member tries to gossip about a patient’s case in Teams (violating HIPAA privacy); Insider Risk alerts the admin that a departing employee downloaded an unusual volume of records last week[5][3]. Later, when an audit or legal inquiry comes up, they use eDiscovery Premium to quickly pull all relevant emails and Teams chats about a specific patient, instead of combing through mailboxes manually[3]. All of this significantly reduces the risk of data breaches or compliance violations that could cost the clinic fines or reputational damage. For many SMBs, especially those dealing with sensitive customer data, the Purview Suite’s capabilities offer peace of mind and concrete risk reduction that justify the cost.

Feature Comparison: Business Premium vs. Defender & Purview Add-ons

The following table compares which key features are included in Business Premium out-of-the-box versus what is added by the Defender Suite and Purview Suite add-ons:

Feature / CapabilityBusiness Premium (Base)+ Defender Suite Add-on+ Purview Suite Add-on
Identity Protection & GovernanceEntra ID P1 – Conditional Access, basic SSPR; no risk-based policies[5].Entra ID P2 – Adds risk-based Conditional Access, Identity Protection (automated ML-driven risk detection) and Privileged Identity Management[5][6].(No change)
Endpoint Security (EDR)Defender for Business – Included EDR with next-gen AV and auto-remediation; no advanced hunting[4][4].Defender for Endpoint Plan 2 – Full EDR suite with threat advanced hunting, custom detections, 180-day data retention, threat analytics[4][4].(No change)
Email & Office 365 SecurityDefender for Office 365 Plan 1 – Safe Links, Safe Attachments, anti-phish for email/SharePoint/OneDrive/Teams[3].Defender for Office 365 Plan 2 – Adds Attack Simulation Training, automated investigation & response, threat trackers, rich reporting[5].(No change)
Cloud App Security (CASB)None included (no CASB; shadow IT not visible)[5].Defender for Cloud Apps – Full CASB: SaaS app discovery, OAuth app control, session policies (e.g. block risky downloads)[5][4].(No change)
On-Prem Identity Threat DetectionNone (no on-prem AD monitoring).Defender for Identity – AD threat analytics (sensors for DCs to detect lateral movement, credential theft)[4][4].(No change)
Information Protection (Sensitivity Labels & Encryption)Manual labeling & encryption (AIP Plan 1). Users can apply sensitivity labels to emails/docs and encrypt them manually[3][3].(No change)Auto-labeling & advanced protection. Automatically detect sensitive content and apply labels with encryption automatically; includes Message Encryption for emails and Customer Key for BYO encryption keys[5][3].
Data Loss Prevention (DLP)Office 365 DLP for Exchange, SharePoint, OneDrive. Can detect/prevent sharing sensitive info in email and M365 documents[3][3]. No coverage of Teams or Windows endpoints.(No change)Advanced DLP across Exchange, SharePoint, OneDrive, Teams chats, and endpoints (Windows devices). Can block sensitive info in Teams messages or copying to USB, etc.[3][3].
Insider Risk ManagementNot included.(No change)Insider Risk Management – Detects risky user actions (mass downloads, data exfiltration indicators) with dashboards & alerts[5][3]. Privacy controls to pseudonymize user identities during investigation.[3]
Communication ComplianceNot included.(No change)Communication Compliance – Monitors internal communications (Teams, Exchange) for policy violations (e.g. harassment, inappropriate sharing) and flags them for review[5][3].
Records & Data Lifecycle MgmtBasic retention policies for email and files (manual setup, no record declaration)[3].(No change)Advanced Records Management – Classify content as records, apply retention with triggers & disposition reviews; automated lifecycle policies for regulatory compliance[3][3].
eDiscovery & Legal HoldeDiscovery (Standard) – Basic content search and ability to place holds on mailboxes/sites[3][3]. Limited features, suitable for small-scale searches.(No change)eDiscovery (Premium) – Full case management, legal hold across M365, Teams conversation threading, search analytics, export toolset[3][3]. Enables in-house handling of legal inquiries at enterprise scale.
Audit LoggingStandard Audit – 90 days log retention; basic user/activity events[3][3].(No change)Audit (Premium) – 1 year (extendable) retention of detailed audit logs, including events like document read/access, item deletions, etc.[3]. Critical for forensic investigations and compliance audits.
Compliance ManagerBasic access – Compliance Manager with a few assessments; limited automation (mostly manual tracking)[3].(No change)Full Compliance Manager – All regulatory templates (GDPR, HIPAA, ISO, etc.), automated control tracking, improvement action workflow[3]. Provides a centralized compliance dashboard for managing requirements.
AI Data Insights (New)None (base has no specialized AI data governance tools).(No change)DSPM for AI – Monitors AI/cognitive services interactions with your data, alerting on risky prompts or data exposure via AI. Helps ensure sensitive data isn’t misused by AI like Copilot[5].

Table: Key feature comparison between Business Premium base, and with Defender Suite or Purview Suite add-ons enabled. (A checkmark “✔” indicates the feature is included with that plan; blank/‘no’ means it’s not included. Some base features are enhanced by the add-ons as noted.)[3][1]

Are These Add-Ons Good Value for SMBs?

Considering their breadth of features and pricing, the Defender and Purview suites offer strong value for SMBs that need advanced security or compliance:

  • Cost-Effectiveness: At $10 per user each (or $15 for both), these add-ons are dramatically cheaper than upgrading to an Enterprise E5 license. For example, Business Premium + both suites = ~$37/user, whereas Microsoft 365 E5 (which includes similar security/compliance features plus other things) is ~$57/user – a significant jump[1][2]. Microsoft and partners estimate ~65–68% cost savings compared to purchasing equivalent capabilities standalone or moving to E5[1][6]. This puts enterprise-grade tools within reach of smaller budgets.
  • No Paying for Unneeded Extras: Unlike a full E5 upgrade, these focused suites let an SMB pay only for security and/or compliance enhancements, without paying for other E5 features they might not use (like phone system, Power BI Pro, etc.). It’s a targeted uplift: “exactly what SMBs need to stay secure and compliant” without unnecessary extras[2].
  • Integrated Simplicity: All Defender and Purview tools are part of the M365 platform, meaning one unified ecosystem instead of a patchwork of point solutions[2][1]. SMB IT teams benefit from a single pane of glass and correlated insights (e.g. a Defender alert can link directly to related user activities that Purview Audit logged)[2]. This reduces complexity and the learning curve. For a small business with perhaps one IT admin (who wears many hats), having these advanced capabilities built-in to Microsoft 365 is far easier than managing separate third-party security or compliance products.
  • Improved Security Posture: The Defender Suite’s real-time detection and XDR approach can dramatically shorten response times to threats – automatically containing incidents that might otherwise go unnoticed for days[2][2]. Shorter “dwell time” means less damage if a breach occurs. In an SMB, where a single cyberattack (ransomware, business email compromise, etc.) could be devastating, this proactive defense is invaluable. Additionally, many cyber insurers now require enhanced controls (like EDR, MFA, DLP) – these suites can help meet insurance or regulatory requirements that an SMB might face[4].
  • Strengthened Compliance & Client Trust: The Purview Suite helps SMBs meet data protection laws (like HIPAA for health, GDPR for any business dealing with EU data, GLBA for finance, etc.) without hiring a compliance team[2]. It can also be a selling point to clients – an SMB can demonstrate they use the same robust compliance tools as an enterprise to safeguard data. This can build trust and open doors to business that might demand certain security/compliance standards in contracts.
  • Flexibility: SMBs can choose either or both suites depending on their needs. For example, a small CPA firm might adopt Purview for compliance (to protect financial data) even if they feel base security is enough, or vice versa, a tech startup might take Defender Suite for security hardening. There’s also flexibility to license only certain users if desired – e.g. give Purview Suite licenses just to legal/HR personnel for eDiscovery and communication monitoring, or Defender Suite just to IT admins and high-risk users. (Note: Microsoft does recommend a consistent deployment for security tools to be fully effective[4], but the add-ons can technically be applied per user.)

Potential Considerations: Of course, whether it’s “good value” depends on the specific SMB. For a very small business (say 5-10 users) with a tight budget and minimal sensitive data, the base Business Premium might suffice – $10/user extra might not seem worth it if they feel low-risk. However, as soon as an organization has valuable data or regulatory obligations, the cost of these add-ons is modest compared to the potential cost of a data breach, fines, or a serious cyber incident. Also, deploying these advanced tools does require some IT expertise to configure policies (e.g. writing good DLP rules or tuning insider risk thresholds) – SMBs may need a partner’s help or IT consultant to get the most out of it. But many Microsoft partners offer managed services on top of these suites to assist SMBs (as noted by providers like Chorus and others)[1][1].

Overall, Microsoft has intentionally priced and packaged Defender and Purview suites to deliver high value to SMB customers. They effectively “democratize” enterprise security and compliance, letting a 50-person or 200-person company attain nearly the same level of protection as a 5,000-person company[2][3]. For most SMBs that “face the same threats as large enterprises, but without the same resources”, these add-ons are a welcome solution[2]. In practice, they allow SMBs to level up their security and data protection posture significantly without breaking the bank – which, in today’s threat and regulatory landscape, represents a very good value.

Real-World Examples of SMBs Using Defender & Purview Features

To illustrate how features from the Defender and Purview suites can be applied effectively, let’s look at a few concrete scenarios in small or mid-sized organizations:

  • Phishing and Ransomware Defense (Defender Suite): Scenario: A 100-user manufacturing company was frequently targeted by phishing emails, one of which led to a malware infection that halted production for a day. After adding the Defender Suite, they used Attack Simulation Training (Defender for O365 P2) to run quarterly fake phishing campaigns, educating employees on spotting malicious emails[5]. They also benefited from automated investigation – when an employee later clicked a real phishing link, Defender instantly quarantined the suspicious email across all mailboxes and isolated the user’s device. The attack was contained in minutes, with minimal impact. Defender for Endpoint P2’s advanced hunting then allowed their IT service provider to scour all machines for the malware’s indicators to ensure no foothold remained. This multi-layered defense, previously only feasible for enterprises, dramatically reduced successful phishing incidents at the company.
  • Shadow IT Control & Data Oversharing (Defender Suite + Purview): Scenario: A 50-person marketing agency found that employees were signing up for unapproved cloud apps to share large graphics files with clients, bypassing IT policies. This posed both security and client-data privacy concerns. Using Defender for Cloud Apps (CASB) from the Defender Suite, they discovered dozens of third-party apps in use[5]. The IT manager set policies to block high-risk apps and require OAuth approval for others. At the same time, with Purview DLP, they put rules in place so that even if users tried using personal apps, any file containing client personally identifiable information would be blocked from upload[2]. In one case, Defender for Cloud Apps flagged an employee trying to use a free AI writing tool with client data; thanks to integration with Purview, a DLP policy automatically prevented the user from feeding sensitive client info into that tool[2]. The combined suites helped the agency rein in shadow IT and protect client data, all through their Microsoft 365 admin consoles.
  • Insider Threat and Fraud Prevention (Purview Suite): Scenario: A small financial services firm (100 users) dealt with an incident where a departing employee attempted to take client lists and sensitive reports on their way out. Without Purview tools, this wasn’t noticed until after the data was gone. Now, with Insider Risk Management, the firm has policies to alert if someone downloads unusually large amounts of confidential data or tries to mass-delete files[3]. Recently, it flagged a middle manager who downloaded a portfolio of 200 client files in two days. Upon investigation, it turned out to be for legitimate work, and no action was taken – but the company leadership expressed relief knowing the system is actively looking for early warning signs. In another instance, Communication Compliance caught an employee in the finance department discussing “off-book accounts” in Teams with a colleague – triggering an alert to compliance officers. This led to an internal review that uncovered a potentially fraudulent activity, which they stopped early. For a firm subject to financial regulations, these kinds of internal checks were something they never imagined they could implement with a small IT team.
  • Regulatory Compliance & Audit Readiness (Purview Suite): Scenario: A healthcare clinic with 30 staff must follow HIPAA regulations. They used to rely on manual policies and trust. After adopting the Purview Suite, they leveraged Compliance Manager with the HIPAA template, which gave them a clear to-do list and showed they were only ~60% compliant initially. Over a few months, they methodically raised this score by enabling various controls (DLP policies for patient data, encryption on all sensitive emails, strict retention on medical records, etc.)[3]. When an external auditor came, the clinic was able to demonstrate – using Compliance Manager’s reports – exactly what safeguards were in place and how they map to HIPAA rules. They also had Audit (Premium) logs to show detailed histories of who accessed what information when, which impressed the auditors. The clinic’s administrator noted that what used to be a nerve-wracking, costly compliance audit process became far smoother thanks to having enterprise-grade compliance tooling. They avoided potential fines and felt more confident that they weren’t inadvertently failing their legal obligations.
  • Legal eDiscovery for a Small Business (Purview Suite): Scenario: A 25-person consulting company became party to a legal dispute and needed to produce all communications related to a particular project from the last year. Without eDiscovery tools, they would have had to manually search individual mailboxes and Teams chats – a time-consuming task (or hire an expensive external eDiscovery service). However, since they had the Purview add-on, their IT admin used eDiscovery Premium to create a case, search across all user data (emails, Teams, SharePoint files) with date and keyword filters, and then used the built-in relevance sorting to cull irrelevant data[3]. They placed a few mailboxes on hold to preserve data and exported a neatly organized dataset for their lawyer. What could have taken weeks manually was done in days, saving on legal fees and minimizing disruption. This level of capability, once exclusive to big companies’ legal departments, proved extremely valuable to this small firm in handling an unexpected legal challenge.

Conclusion

For small and medium businesses, the Microsoft Defender Suite and Microsoft Purview Suite add-ons represent a significant opportunity to enhance security and compliance without overspending or adding complexity. Business Premium already provides a strong base for SMB productivity and security, and with these add-ons an SMB can effectively elevate itself to E5-level protection in the areas of threat defense and data governance[3].

These suites include a rich array of services (from XDR across identities, devices, email, and cloud apps in Defender[6], to end-to-end information protection and risk management in Purview[6]) that previously were out-of-reach for many smaller organizations. Now, at roughly $10–15 per user, SMBs get access to tools that enterprise CISOs rely on, which can be a game-changer in fending off cyber threats and staying compliant with laws. The real-world examples above underscore how such capabilities can directly reduce incidents (like breaches or leaks) and empower SMBs to handle situations internally that they otherwise couldn’t.

In assessing value, it’s clear that Microsoft has targeted these suites to deliver maximum bang for the buck for SMBs: they consolidate multiple solutions into one package, leverage the existing Microsoft 365 platform (no extra infrastructure needed), and come at a price point that is justified by the risk mitigation they provide[1][2]. For most growing businesses – especially those handling sensitive customer data or operating in regulated sectors – the Defender and Purview suites are indeed worth the investment to secure their environment and protect their data. As one Microsoft partner put it, “You get an immense amount of coverage… at a heavily reduced price point. It’s offering incredible value for SMBs and offers the level of protection they’ve desperately wanted and needed for a long time.”[1][1]

Ultimately, with cyber threats rising and data regulations tightening even for smaller firms, these add-ons enable SMBs to operate with the same confidence and compliance as a larger enterprise, without having to incur an enterprise cost or complexity. In summary: Microsoft Defender Suite and Purview Suite for Business Premium equip SMBs to defend against external threats and guard against internal risks in a holistic way, making enterprise-grade security accessible and practical for businesses of any size[1][2].

References

[1] Defender and Purview add-ons for Business Premium | Chorus

[2] SMB Cybersecurity Gets a Boost with Microsoft 365 Business Premium

[3] Microsoft Purview Suite for Business Premium: Features & SMB Use Cases

[4] Microsoft 365 Announces E5 Security for Business Premium Customers as …

[5] Introducing new security and compliance add-ons for Microsoft 365 …

[6] Elevate SMB Security, Compliance & Copilot Readiness: Microsoft …