Microsoft 365: Administrators no longer receive passwords by email; unlicensed accounts are archived

[German]A few more additions to Microsoft 365 in the last few days: Microsoft is burying the option for administrators to have a password sent to them by email when setting up or editing new Microsoft 365 user accounts. This option will be discontinued by the end of August 2024 at the latest. Microsoft also wants to automatically archive unlicensed OneDrive accounts with OneDrive for Business after 90 days. This will begin in 2024 (January to March).

No more passwords by email

Previously, administrators could have the password for a new Microsoft 365 user account sent to them by email when they set it up or edited it. However, this function will be discontinued – Martin Geuß has included the relevant information in this German post, where I first saw it.

MC837081 - Microsoft 365 admin cente

The information goes back to an entry MC837081 (Microsoft 365 admin center: Admins can no longer receive user passwords in email as of August 30, 2024) as of August 30, 2024) from July 29, 2024 in the Microsoft 365 Admin Center. The message states that the "Send password by email" feature will be removed from the Microsoft 365 Admin Center as of August 30, 2024.

Admins will no longer be able to receive usernames and passwords by email once this change has been implemented. Microsoft recommends using the new print option in the Microsoft Admin Center to save user account details and share them securely with your users.

OneDrive: Unlicensed user accounts are archived

While researching the above text, I came across the entry MC836942 (Microsoft OneDrive: Update for unlicensed accounts) from July 26, 2024 in the Microsoft 365 Admin Center. There, Microsoft announces that it is updating its storage policies for unlicensed OneDrive business and enterprise accounts. Microsoft will begin rolling out the changes at the end of January 2025 and is expected to be ready by the end of March 2025.

After this storage policy goes into effect for a tenant, all OneDrive user accounts that have been unlicensed for more than 90 days will be automatically archived and will no longer be accessible to end users. Admins can view these accounts using the admin tools, but the accounts will not be accessible to users until admins take action. For example, a OneDrive account that was unlicensed on August 1, 2025 will be inaccessible to users on October 1, 2025.

Microsoft provides further information in the linked entry MC836942 of the Microsoft 365 Admin Center on how administrators can view the accounts in question and how to take action. Tenants from the education sector are currently excluded.

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