In the Spotlight  

• End of Standalone OneDrive and SharePoint Online Plans: Microsoft stops selling standalone SharePoint and OneDrive plans to new customers from June 1, with Microsoft 365 Business and Enterprise suites becoming the primary alternatives. 
• Microsoft Outlook Adds External Email Tag in Inbox Rules: Outlook inbox rules will add support for the "External" email tag to automatically move or organize messages arriving from outside the organization.    
• Teams Private Channel Migration Remediation: Microsoft will automatically delete empty or guest-only private channels blocking the enhancement migration, unless admins manually assign an in-tenant owner before June 5, 2026. 
• New SharePoint Experience Hits General Availability: SharePoint rolls out a redesigned app bar and layout by mid-June, introducing a refreshed navigation experience alongside Copilot-driven AI enhancements.

Here’s a quick overview of what’s coming:     

• Retirements: 5       
• New Features: 12    
• Enhancements: 7      
• Functionality Changes: 6   
• Action Required: 1 
• Live Now: 1 

Retirements 

1. Microsoft will retire the Sway Windows app on June 1, 2026, and organizations should transition to the web-based version at sway.cloud.microsoft. 
2. Microsoft is officially retiring the Outlook for Windows report in the Exchange admin center this June. 
3. Effective June 30, 2026, Teams Live Events and its isBroadcast Graph API property will be retired, so admins should migrate to Teams town halls and Virtual Event APIs. 
4. Support for Assignments and Courses ACEs and SharePoint dashboard web parts will end on June 30, and the redundant components will be removed from Viva Connections. 
5. Teams retires legacy third-party meeting and call control APIs to block unsupported hardware and external applications from managing in-meeting functions. 

New Features    

1. Usage-based billing for High Volume Email (HVE) in Microsoft 365 begins on June 1, 2026, at $42 per million recipients. 
2. Microsoft Purview adds a Governance Reviews Dashboard (Private Preview), consolidating inactivity checks, ownership validations, and attestation requirements for site owners. 
3. SharePoint Online introduces a report showing item-level permissions granted to Everyone and Everyone except external users groups. 
4. Entra enables App Instance Lock by default for newly created applications for protecting sensitive service principal properties. 
5. Teams adds a new capability to automatically detect and label external AI assistant bots in the meeting lobby and require explicit organizer approval before they can join.  
6. SharePoint and OneDrive gain a "File Quarantine" DLP action that isolates policy-violating files and replaces them with custom tombstone notices. 
7. Device management for Android rooms, phones, panels, and displays is moving from TAC to the Pro Management Portal, unifying inventory & health tracking by early June. 
8. Insider Risk Management adds visibility into AI prompts and responses associated with insider risk indicators to help analysts investigate potential risks. 
9. The Microsoft 365 Copilot Planner Agent hits general availability this month, allowing tenant-wide task and plan management directly through the Copilot. 
10. Teams adds an end-user reporting option for suspicious external contacts to let users report potential phishing and social engineering threats. 
11. Microsoft Purview integrates Adaptive Protection with Data Lifecycle Management to preserve and recover content deleted by high-risk users. 
12. Starting June 2026, Microsoft 365 Archive will introduce granular file-level archiving for SharePoint to reduce storage costs without taking entire sites offline. 

Enhancements    

1. The new Outlook for Windows and web enhances mass mailing with an advanced Mail Merge feature, allowing users to insert dynamic fields for personalized communication. 
2. Microsoft Purview Insider Risk Management is expanding its protection to AI agents with specialized policies to detect and flag risky agent-driven actions. 
3. Microsoft Purview enhances the Role Groups page with permission lookup by roles and memberships to simplifying access reviews and role management. 
4. SharePoint home sites introduces new web parts and advanced Teams app customization capabilities to improve corporate intranet layout and personalization. 
5. Zero-hour Auto Purge (ZAP) expands its malware and phishing remediation to continuously scan and neutralize threats sitting in the Deleted Items folder. 
6. Microsoft adds capabilities such as Defender for Office 365 Plan 1 and additional storage to existing enterprise suites as part of the global pricing adjustments taking effect on July 1. 
7. Microsoft Data Lifecycle Management will introduce a "last accessed" condition for retention policies to automatically purge inactive OneDrive and SharePoint files. 

Existing Functionality Changes    

1. Microsoft fully enforces security hardening in Entra Connect to block hard matching and prevent account takeover vulnerabilities on role assigned users.    
2. The ResultCount parameter in the Search-UnifiedAuditLog cmdlet will display a running count of retrieved records, while a new moreRecordsAvailable property will indicate whether additional records remain. 
3. SharePoint and OneDrive DLP policies will allow administrators to configure policy tips and email notifications independently rather than requiring both. 
4. Purview eDiscovery will block characters like +, =, @, /, and * in names and descriptions for new or edited cases. 
5. Teams is turning off the live captions profanity filter by default for unconfigured users to improve spoken-word accuracy. 
6. Starting mid-June, 2026, Clipchamp license (SKU) and service plan names will be updated across Microsoft 365 licensing, billing, purchasing, and reporting experiences. 

Action Required:  

1. Exchange Web Services access will be blocked for Kiosk and Frontline worker mailboxes. Upgrade license to Exchange Plan 1/2 or Microsoft 365 E3/E5 to maintain integration. 

Live Option: 

1. Microsoft 365 adds a dedicated License Requests page to centralize Copilot license request management for administrators. 

Take steps, stay ahead, and ensure these updates don't impact you!