Encryption in Microsoft Teams and SharePoint – what are the current regulations?

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Brief Overview of the Update

Microsoft has recently released an update regarding how encryption is managed in Teams, which also impacts storage and collaboration via SharePoint and OneDrive. With over 320 million active users per month, Teams has become a central platform for business collaboration—and secure handling of sensitive information is more important than ever.

How Your Data Is Protected in Teams and SharePoint

All calls, chats, and files stored or shared in Teams and SharePoint are automatically protected by multiple layers of encryption, both in transit and at rest. No additional configuration is required to achieve basic, standard-level protection. For organizations with particularly high security requirements, it is possible to use custom encryption keys, providing even greater control over data management.

End-to-End Encryption – When Is It Appropriate?

For those needing extra protection, so-called end-to-end encryption (E2EE) is also available in Teams. This means that only participants in a call or meeting can access the content—not even Microsoft can decrypt the data. However, E2EE is limited to individual calls and meetings, and several features such as recording, transcription, and certain security services are disabled when it is used. Therefore, it may be wise to choose E2EE for particularly sensitive conversations, while standard encryption is usually sufficient for daily collaboration and document management in SharePoint.

Considerations for Your Organization

It is important to find the right balance between security and user-friendliness. Many legal requirements, such as the GDPR, require the protection of sensitive personal data—and encryption is often a central requirement. At the same time, organizations need to collaborate effectively. Microsoft’s solution allows you to tailor the security level as needed, but it is important to evaluate which features are necessary for daily operations. Regardless of your choice, it is advisable to review your organization’s overall information security strategy and ensure Teams and SharePoint are included in it.

Read more from Microsoft about how security and compliance are managed in Teams:
Overview of security and compliance – Microsoft Teams | Microsoft Learn

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