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What must administrators do during the Microsoft Entra B2B transition?
Microsoft plans to discontinue SharePoint One-Time Passcode authentication starting in May 2026. Administrators must prepare for this transition as external sharing processes shift entirely to Microsoft Entra B2B. The company announced this update through the Microsoft 365 Message Center via support article MC1243549 on March 4, 2026. This transition impacts all commercial, government, and public sector tenants. External users accessing OneDrive or SharePoint files will experience changes in their authentication workflow.
Important Transition Deadlines
- May 2026 initiates the switch to Microsoft Entra B2B for new external sharing invitations.
- May 2026 deprecates the EnableAzureADB2BIntegration setting for controlling external share behavior.
- July 2026 marks the complete discontinuation of SPO OTP authentication.
- July 2026 removes access for external users relying on older shared personal links without a guest account.
- August 31, 2026 serves as the expected completion date for the entire rollout across all tenants.
Restoring External User Access
Administrators have straightforward methods to restore access for affected external users after July 2026. IT teams can create a dedicated guest account within Entra B2B to ensure compliance. Alternatively, an internal authorized user can simply reshare the required file, folder, or website with the external contact. These steps guarantee uninterrupted collaboration and maintain document security.
Reasons Behind the Update
Microsoft designed this transition to streamline external collaboration across its platform. Moving to Microsoft Entra B2B aligns all authentication processes with unified identity standards. Organizations gain consistent management over the guest lifecycle. Administrators also receive better control over governance and conditional access policies within Microsoft 365.
Recommended Administrative Actions
This system update requires no direct technical intervention from backend administrators. However, proactive communication remains vital to ensure a seamless user experience. IT departments should notify internal staff that specific external partners might lose access to older shared links starting in July 2026. Advising staff to reshare important documents early prevents workflow disruptions and reduces support tickets.