News
        
        Office 365 Gets Multifactor Authentication at No Cost 
        
        
        
			- By Kurt Mackie
- February 12, 2014
Microsoft this week added free multifactor authentication support to its  standalone Office 365 plans, as  well as to  the Midsize Business, Enterprise, Academic and Nonprofit  Office 365 plans.
Microsoft's multifactor authentication service is based on  technology from PhoneFactor, which it acquired in 2012. It enables confirmation  of user identities via automated phone calls and text messages before allowing  them access to Office 356 applications. Authentication can also be verified through  Microsoft's free notification app, which is available for Windows Phone, Android  and iPhone devices.
Currently, secondary authentication support is just available  for Web-enabled Office 365 products.
"Today, the  second factor of authentication is available for web-based access to Office 365  only," a Microsoft spokesperson clarified via e-mail. "For the Office  desktop applications we are planning to add the ability for a second factor of  authentication later in 2014."
Office 365 subscribers are just getting a subset of  Microsoft's full Windows Azure Multi-Factor Authentication service (see table).  The Windows  Azure Multi-Factor Authentication service was rolled out in September and is  priced at $2 per user per month. In contrast to the Office 365 version, the  Windows Azure Multi-Factor Authentication service is full featured, with  support for hybrid networks. It supports the generation of security reports and  fraud alerts, and includes controls to block or unblock users. It also supports  various customizations and includes a software development kit.
  
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        |  | Multi-Factor Authentication  for Office 365 | Windows Azure Multi-Factor  Authentication |  
        | Administrators can  Enable/Enforce MFA to end-users | Yes | Yes |  
        | Use Mobile app (online and  OTP) as second authentication factor | Yes | Yes |  
        | Use Phone call as second  authentication factor | Yes | Yes |  
        | Use SMS as second  authentication factor | Yes | Yes |  
        | Application passwords for  non-browser clients (e.g. Outlook, Lync) | Yes | Yes |  
        | Default Microsoft greetings  during authentication phone calls | Yes | Yes |  
        | Custom greetings during  authentication phone calls | - | Yes |  
        | Fraud alert | - | Yes |  
        | MFA SDK | - | Yes |  
        | Security Reports | - | Yes |  
        | MFA for on-premises  applications/ MFA Server | - | Yes |  
        | One-Time Bypass | - | Yes |  
        | Block/Unblock Users | - | Yes |  
        | Customizable caller ID for  authentication phone calls | - | Yes |  Table 1. Multi-Factor Authentication for Office 365 is a subset of Microsoft's more complete Windows Azure Multi-Factor Authentication service, which offers more customization options and support for hybrid network scenarios. (Source: "Multi-Factor Authentication for Office 365" TechNet document) | 
Administrator Perks
Microsoft also claims this week to have rolled out Multi-Factor  Authentication for Azure Administrators. It's also a free service like the  Office 365 version, but it's designed for administrators of Office 365 and  Windows Azure accounts. Multi-Factor Authentication for Azure Administrators  was announced as available on Tuesday, although it apparently was available  some time before. Shawn Bishop, a program manager on the Windows Azure  Multi-Factor Authentication team, said that "technically, this has been  around for a number of months." Like the Office 365 version, Multi-Factor  Authentication for Azure Administrators contains just a subset of the features that  are available in Microsoft's full-fledged Windows Azure Multifactor  Authentication service.
Organizations wanting to use the Windows Azure Multifactor  Authentication service for other applications besides Microsoft's cloud-enabled  services can run it from a server on their own premises. Microsoft calls the  server used for such an approach the "Multi-Factor Authentication Server."  Running the Multi-Factor Authentication Server on premises allows the data to  stay on the customer's site, but Windows Azure still performs the  authentications from Microsoft's servers, according to Bishop. However, using  that hybrid approach enables an organization to add authentication support  across some of its network solutions. For instance, it can support solutions  such as "VPN, AD FS, UAG, TMG, RD Gateway, on-premises OWA/Exchange,  Citrix, IIS web applications and Terminal Services," according to Bishop.  He added that the server comes with a "User Portal that permits users to  perform self-enrollment" and other account management functions.
Work in Progress
Microsoft is continuing to add to its multifactor authentication  service. Some parts aren't complete. For instance, there currently isn't  second-factor authentication for Office applications for the desktop, including  "Outlook, Lync, Word, Excel, PowerPoint, PowerShell, and SkyDrive Pro,"  according to Microsoft's announcement. Instead, Microsoft suggests using a new  "App Passwords" feature in the interim. 
"An App Password is a 16-character randomly generated  password that can be used with an Office client application as a way of  increasing security in lieu of the second authentication factor," Microsoft's  announcement explained. However, App Passwords don't work to enable access to PowerShell,  Microsoft warned.
Microsoft is promising to enable "native multi-factor  authentication" for Office 365 users that doesn't require the App Password  approach sometime later this year. For now, Microsoft is requiring the use of  the App Password.
"App Password  will be required for users who are enrolled in Multi-Factor Authentication for  Office 365," the Microsoft spokesperson explained. 
Microsoft also plans to add support for "third-party multi-factor  authentication solutions" as well as smart cards, although it's not clear  when that will happen.