What Microsoft 365 solution baseline settings are recommended?

What Microsoft 365 solution baseline settings are recommended?

This article outlines the recommended settings for Microsoft 365 solution baselines, helping you align with best practices while optimizing user experience, performance, and security. Adjust these settings as needed to meet your organization's requirements and compliance needs.

Important!

  • These recommendations follow Microsoft's best practices and Nerdio’s expertise from years of experience. Before implementing these changes, consult with your Security and Operations teams.

  • Before configuring your solution baseline, we recommend cloning it to ensure a fresh starting point. For details, see Solution Baselines: MSP-level Management.

Consider the following solution baselines recommendations:

Defender for Endpoint: Recommended solution baseline settings

Consider the following solution baselines recommendations:

Group

Settings

Recommendations and additional details

Prerequisites

Name and Description

These settings allow you to assign a unique name and description to each baseline, making it easier to determine its applicability for a customer.

License validation

This setting is report-only because there is no enforcement action.

Permissions

This setting is report-only because there is no enforcement action. It verifies if the correct API permissions are applied.

Enable Defender for Endpoint in Nerdio Manager for MSP

  • Enable Defender for Endpoint: Enabled.

    Justification: When enabled, this setting automatically enables Defender for Endpoint at the customer-account level.

Integrations

Intune

  • Allow Defender to manage endpoint security configurations: Enabled.

    Justification: Defender can't enforce security policies directly

  • Enable device diagnostics: Enabled.

    Justification: Prevents troubleshooting limitations, enhances threat visibility, and supports effective remote assistance.

Entra – Conditional Access

  • Let Defender evaluate device risk: Enabled for all options - Windows, iOS, and Android.

    Justification: Enabling Defender for Endpoint to evaluate device risk enhances security by integrating real-time risk assessments into Entra Conditional Access policies. This ensures that access to corporate resources is dynamically controlled based on a device's security posture.

Device Onboarding

Device Onboarding

  • Device onboarding profile for Intune managed devices: Coming soon. Follow the Release Notes page for updates.

Baseline Endpoint Security Policies

  • Policy Baseline: Select either Nerdio’s default Policy baseline for Defender for Endpoint or Custom.

    Justification: The default option is ideal for partners without existing Defender for Endpoint policies. However, as you expand your Modern Work offerings, you will likely create a custom policy baseline instead. For details, see Intune: Policy Baselines.

  • Assignment: Select All devices or Custom (manually assign the configuration profile) if you want to choose what devices the policies should be assigned to individual customers.

    Justification: Typically, you want your endpoint security policies to apply to all devices. However, if you need to make exceptions, select Custom.

Notifications

Notifications

  • Service Notifications: Coming soon. Follow the Release Notes page for updates.

Summary

Summary

This provides a high-level overview of how enabling the solution baseline affects the customer. It includes Enforce, Report-only, and Exclude modes.

Options

  • Process the recommended Solution Baselines for Defender for Endpoint after saving: If selected, this immediately applies the changes to those customer accounts where the solution baseline is currently assigned.

  • Do you want to remove policies that are affected by this change?: If selected, this removes from the solution baseline any policies that were previously assigned.

Entra ID: Recommended solution baseline settings

Consider the following solution baselines recommendations:

Group

Settings

Recommendations and additional details

General

Name and Description

These settings allow you to assign a unique name and description to each baseline, making it easier to determine its applicability for a customer.

M365 Org Settings

  • Let group owners add people outside the organization to Microsoft M365 Groups as guests: Disabled.

    Justification: Allowing external guests can introduce security and compliance risks, such as potential data leaks and unauthorized access. It's advisable to disable this setting, unless there is a clear business need.

  • Let guest group members access group content: Disabled.

    Justification: It is generally advisable to restrict guest access by default and enable it only when necessary, applying security controls to minimize data exposure.

Identity

Users

  • Users can register applications: Disabled.

    Justification: Preventing all users from registering applications helps mitigate security risks, such as unauthorized third-party app integrations that could access organizational data.

  • Restrict non-admin users from creating tenants: Enabled.

    Justification: Prevents users from unintentionally or maliciously creating separate tenants, which could lead to data fragmentation, compliance issues, or shadow IT risks.

  • Users can create security groups: Disabled.

    Justification: Ensures IT control over group management.

Groups

  • Users can create Microsoft 365 groups in Azure portals, API, or PowerShell: Disabled.

  • Justification: Prevents uncontrolled group sprawl, reducing administrative overhead.

External Identities

  • Guest invite restrictions: Select Member users and users assigned to specific admin roles can invite guest users including guests with member permissions.

    Justification: Prevents uncontrolled external access and security risks.

Enterprise Apps

  • User consent for applications: Select Do not allow user consent. An administrator will be required for all apps.

    Justification: Prevents unauthorized app access and data leaks.

  • Users can request admin consent to apps they are unable to consent to: Enabled.

    Justification: Allows controlled access to apps while preventing users from granting excessive permissions.

Auth & Passwords

Registration Campaign

  • Registration Campaign State: Enabled.

    Justification: Encourages users to register for security features like MFA and Self-Service Password Reset (SSPR).

  • Days allowed to snooze: Set to 3.

    Justification: Balances security and user convenience by giving users a short grace period.

  • Limited number of snoozes: Enabled.

    Justification: Prevents indefinite postponement of security registration and forces compliance within a reasonable timeframe.

Summary

Summary

This provides a high-level overview of how enabling the solution baseline affects the customer. It includes Enforce, Report-only, and Exclude modes.

Options

  • Process the recommended Solution Baseline for Entra ID after saving: If selected, this immediately applies the changes to those customer accounts where the solution baseline is currently assigned.

  • Do you want to remove policies that are affected by this change?: If selected, this removes from the solution baseline any policies that were previously assigned.

Exchange Online: Recommended solution baseline settings

Consider the following solution baselines recommendations:

Group

Settings

Recommendations and additional details

Prerequisites

Name and Description

These settings allow you to assign a unique name and description to each baseline, making it easier to determine its applicability for a customer.

Licenses

  • Check for license: This setting is report-only because there is no enforcement action.

Permissions

  • Application context: This setting verifies if the correct API permissions are applied. It is report-only because there is no enforcement action.

Organization

Default domain

  • SPF / DKIM / DMARC: Enabled.

    Justification: Prevent spoofing, phishing, and email forgery.

  • This accepted domain is: Select Authoritative.

    Justification: Ensures that Exchange Online is the primary mail host for your domain.

  • Allow mail to be sent from this domain: Enabled.

    Justification: Ensures outgoing emails are properly routed.

Authentication

  • Modern Authentication: Enabled.

    Justification: Disables legacy authentication to reduce the attack surface

Add-ins

  • Ensure users installing Outlook add-ins is not allowed: Enabled.

    Justification: Prevents installation of malicious add-ins.

Mail flow settings

General

  • Turn off plus addressing for the organization: Enabled.

    Justification: Prevents users from creating unlimited email variations (for example, user+randomtext@domain.com), reducing security risks and mail filtering issues.

  • Turn on sending from alias: Disabled.

    Justification: Prevents users from sending email from alternate or secondary email addresses.

Security

  • Turn off SMTP AUTH protocol for the organization: Enabled.

    Justification: SMTP AUTH is insecure and often exploited by attackers for phishing and credential stuffing.

  • Turn on use of legacy TLS clients: Disabled.

    Justification: Legacy TLS is insecure and frequently targeted by attackers. Enable legacy TLS only if absolutely necessary, and implement a phased approach to migrate older clients to more secure protocols.

Reply-all storm protection

  • Enable reply-all storm protection: Enabled.

    Justification: Prevents excessive reply-all responses that can create email storms or loops.

    • Minimum number of recipients: Set to 1000.

    • Minimum number of reply-alls: Set to 8.

    • Block duration: Set to 10 (hours).

Message Recall

  • Enable cloud-based message recall: Disabled.

    Justification: Prevents reliance on an ineffective recall feature, potential security risks, and auditing challenges.

  • Allow users to recall messages read by the recipient: Disabled.

    Justification: Prevents compromise of audit trails and violations of compliance policies (for example, legal holds, eDiscovery) by recalling read messages.

  • Enable recall alerts for recipients: Disabled.

    Justification: Prevents drawing attention to potentially sensitive information by notifying recipients when a recall attempt fails.

Mailbox settings

Security

  • External warning in Outlook: Enabled.

    Justification: Warns users about external emails to help prevent phishing attacks.

  • Ensure MailTips are enabled for end users: Enabled.

    Justification: Provides real-time email guidance.

  • Enable mailbox auditing: Enabled.

    Justification: Tracks email access and actions for compliance.

  • Additional storage providers in OWA: Disabled.

    Justification: Prevents users from storing emails in untrusted locations.

Retention

  • Default retention for deleted items: Set to 30 (days).

    Justification: Ensures emails are retained for a specified period for compliance.

  • Auto-expanding archives: Enabled.

    Justification: Provides additional mailbox storage for compliance users.

Sharing

  • Calendar sharing level: Select Calendar free/busy information with time only.

    Justification: Controls who can view or edit calendars.

  • External calendar sharing: Select Sharing with a specific domain.

    Justification: Unless your organization requires open collaboration with external domains, it is best to take a more restrictive approach.

User preferences

  • Focused Inbox: Enabled.

    Justification: Improves email organization.

Exchange Online Protection (EOP)

Anti-malware

  • Common attachments filter (only for the default policy): Enabled.

    Justification: Blocks dangerous file types, such as .exe or.vbs.

  • Notifications for internal users sending malware (only for the default policy): Enabled.

    Justification: Alerts internal senders if their email contains malware.

Anti-spam

  • Notifications have been set for Exchange Online Spam Policies: Enabled.

    Justification: Ensures users are informed about quarantined messages.

Anti-phishing

  • Anti-phishing policy has been created: Enabled.

    Justification: Protects against impersonation attacks and spoofing.

Summary

Summary

This provides a high-level overview of how enabling the solution baseline affects the customer. It includes Enforce, Report-only, and Exclude modes.

Options

  • Process the recommended Solution Baseline for Exchange Online after saving: If selected, this immediately applies the changes to those customer accounts where the solution baseline is currently assigned.

  • Do you want to remove policies that are affected by this change?: If selected, this removes from the solution baseline any policies that were previously assigned.

SharePoint and OneDrive: Recommended solution baseline settings

Consider the following solution baselines recommendations:

Group

Settings

Recommendations and additional details

Sharing

Name and Description

These settings allow you to assign a unique name and description to each baseline, making it easier to determine its applicability for a customer.

External Sharing

  • SharePoint: Select New and existing guests.

    Justification: This allows adding new external users but requires them to sign in.

  • Limit external sharing by domain: Select No.

    Justification: For security, it is best to control sharing using either an allowlist or a blocklist. However, adjust this setting based on your organization's requirements.

  • Allow guests to share items they don’t own: Disabled.

    Justification: Prevents guests from resharing confidential files they don’t own.

Access Control

Modern authentication

  • Apps that don’t use modern authentication: Select Block access.

    Justification: Preventing the use of legacy authentication methods helps mitigate security risks, as they lack MFA support and are vulnerable to password attacks.

SharePoint

Notifications

  • Allow notifications: Enabled.

    Justification: Security notifications help users detect unauthorized access or file changes.

Pages

  • Allow users to create modern pages: Enabled.

    Justification: Allow users to create internal pages for collaboration.

  • Allow commenting on modern pages: Enabled.

    Justification: Facilitates internal collaboration.

OneDrive

Retention

  • Days to retain a deleted user’s OneDrive: Set to 60 (adjust per your requirement).

    Justification: Retains files for a specified period in case of accidental deletion or compliance investigations.

Sync

  • Show the Sync button on the OneDrive website: Enabled.

    Justification: Allows users to sync files to their local device securely.

  • Block upload of specific file types: Set per your requirement.

    Justification: This blocks the upload of undesired file types, such as .exe, .msi, and .ps1.

Prerequisites

Licenses

  • Check for license: This setting is report-only because there is no enforcement action.

Permissions

  • Application context: This setting is report-only because there is no enforcement action. It verifies if the correct API permissions are applied.

Summary

Summary

This provides a high-level overview of how enabling the solution baseline affects the customer. It includes Enforce, Report-only, and Exclude modes.

Options

  • Process the recommended Solution Baseline for SharePoint & OneDrive after saving: If selected, this immediately applies the changes to those customer accounts where the solution baseline is currently assigned.

  • Do you want to remove policies that are affected by this change?: If selected, this removes from the solution baseline any policies that were previously assigned.

Teams: Recommended solution baseline settings

Consider the following solution baselines recommendations:

Group

Settings

Recommendations and additional details

Teams & Channels

Name and Description

These settings allow you to assign a unique name and description to each baseline, making it easier to determine its applicability for a customer.

Teams Settings

  • Create private channels: Disabled.

    Justification: Prevents increased IT overhead, limited features, and the risk of orphaned data.

  • Create shared channels: Enabled.

    Justification: Simplifies external collaboration, improves security, and reduces team sprawl.

  • Invite external users to shared channels: Disabled.

    Justification: Ensures that all additions go through IT administration, allowing for better security control.

  • Join external shared channels: Disabled.

    Justification: Allows trusted partner organizations to join through cross-tenant access settings for enhanced security control.

External Collaborators

Guest Access Settings

  • Guest Access: Off.

    Justification: Enhances security. You can handle external collaboration via shared channels, which don’t require guests in your account.

Calling

  • Make private calls: Disabled.

    Justification: Prevents unmonitored communication and potential misuse.

Meeting

  • Screen Sharing: Select Single Application mode.

    Justification: Allows collaboration without sharing files but prohibits sharing the entire desktop.

  • Meet Now in Channels: Disabled.

    Justification: Prevents security risks, compliance issues, and loss of control.

Messaging

  • Edit sent messages: Disabled.

    Justification: Prevents information tampering.

  • Delete sent messages: Disabled.

    Justification: Prevents unauthorized communication from being hidden, ensuring compliance and auditability.

  • Chat: Disabled.

    Justification: Reduces risk of unmonitored communication. Guests can still chat inside meetings.

External access

  • People in the organization can communicate with unmanaged Teams accounts: Disabled.

    Justification: Prevents unmanaged accounts from being vulnerable to phishing attacks or malware that could compromise sensitive information.

  • External users with Teams accounts not managed by an organization can contact users in the organization: Disabled.

    Justification: Prevents unverified external users from contacting internal employees for malicious purposes.

  • People in the organization can communicate with accounts in trial Teams tenants: Disabled.

    Justification: Prevents increased risk to communication due to inadequate enterprise-level security measures in trial accounts.

  • People in the organization can communicate with Skype users: Disabled.

    Justification: Prevents security risks from Skype users, especially those on consumer accounts, who are not subject to the same enterprise security standards as Teams users.

Meetings & Events

Meeting scheduling

  • Private meeting scheduling: Enabled.

    Justification: Enables private meeting scheduling only for authorized users and allows controlling who can create private meetings.

  • Meet now in private meetings: Enabled.

    Justification: Ensures that only authorized users can initiate Meet now sessions in private meetings.

  • Channel meeting scheduling: Enabled.

    Justification: Sets permissions to allow only Team Owners and Admins to schedule channel meetings.

  • Meet now in channel meetings: Enabled.

    Justification: Enables Meet now in channels only for Team Owners or authorized users.

  • Outlook add-in: Enabled.

    Justification: Enables Outlook add-in only for internal users who are trusted and require it for their daily operations.

  • Attendance and engagement report: Select On, but organizers can turn it off.

    Justification: Restricts report sharing and implements strong data retention policies to avoid unnecessary exposure.

  • Include attendees in the report: Select Yes, but attendees can opt out.

    Justification: Only include attendee information when necessary for reporting and compliance.

  • Attendee information: Select Only show who attended.

    Justification: Minimizes data exposure, enhances privacy, and reduces the risk of data misuse.

Meeting Join & Lobby

  • Anonymous users can join a meeting: Disabled.

    Justification: Reduces the risk of uninvited participants.

  • Anonymous users and dial-in callers can start a meeting: Disabled.

    Justification: Prevents unauthorized meeting initiation.

  • Who can bypass the lobby: Set to Only organizers and co-organizers.

    Justification: Ensures meetings are properly moderated.

  • People dialing in can bypass the lobby: Disabled.

    Justification: Allows controlling access for phone participants.

  • People can join external meetings hosted by: Set to Only people in trusted orgs.

    Justification: Protects users from external threats.

Meeting engagement

  • Meeting chat: Select On for everyone but for anonymous users.

    Justification: Prevents spam, phishing attempts, and inappropriate messages by restricting chat access for anonymous users.

  • External meeting chat: Disabled.

    Justification: Prevents uncontrolled information sharing, security gaps with external domains, and a lack of oversight.

Content Sharing

  • Who can present: Select Only organizers and co-organizers.

    Justification: Prevents external users from sharing unwanted or malicious content.

  • Screen sharing: Select Single application.

    Justification: Prevents participants from sharing an entire screen that could expose sensitive information, notifications, or background applications.

  • Participants can give or request control: Disabled.

    Justification: Prevents any participant from taking control of a shared screen, potentially accessing confidential files.

  • External participants can give or request control: Disabled.

    Justification: Prevents external users from taking control of shared content, accessing internal systems, or executing unauthorized actions.

Recording & Transcription

  • Require participant agreement for recording and transcription: Enabled.

    Justification: Prevents legal and compliance issues, privacy concerts, and ethical considerations.

  • Transcription: Disabled.

    Justification: Prevents data retention risks, confidentiality issues, and compliance violations.

Participants

  • Anonymous users can join a meeting: Disabled.

    Justification: Prevents unverified attendees from disrupting meetings, sharing sensitive information with unintended participants, and bypassing tracking or verification.

Voice & Messaging

  • Messaging

  • Calling

  • Call Park

  • Caller ID

  • Mobility

Coming soon. Follow the Release Notes page for updates.

Prerequisites

License Validation

  • License Validation: This setting is report-only because there is no enforcement action.

Permissions

  • Permissions: This setting is report-only because there is no enforcement action.

Summary

Summary

This provides a high-level overview of how enabling the solution baseline affects the customer. It includes Enforce, Report-only, and Exclude modes.

Options

  • Process the recommended Solution Baseline for Teams after saving: If selected, this immediately applies the changes to those customer accounts where the solution baseline is currently assigned.

  • Do you want to remove policies that are affected by this change?: If selected, this removes from the solution baseline any policies that were previously assigned.

 

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