Microsoft Restricts New Office File Creation to Cloud with Latest Policy Update
A new Microsoft 365 policy lets admins restrict Office file creation to cloud storage for stronger security and compliance.
Key Takeaways:
- Microsoft adds a new policy to control where Office files can be saved.
- The update applies only to certain Microsoft 365 enterprise apps.
- IT admins can enforce cloud-only storage for better security and compliance.
Microsoft is taking another step toward a cloud-first future by giving IT admins the ability to restrict new Office file creation to approved cloud storage only. The company has announced on the Microsoft 365 admin center that this change only applies to Word, Excel, and PowerPoint in Microsoft 365 enterprise apps.
This new policy enables IT administrators to control whether users can access non-cloud locations (local and network) to create new Office files. Once enabled, users will only be able to save files to approved cloud locations (like SharePoint Online, OneDrive for Business, or third-party services like Dropbox. This new setting only applies to subscription versions of Microsoft Office.
“This new Policy is part of a new set of tools for IT Administrators to move their organizations towards higher Cloud usage and Increase security and compliance: Files in the Cloud are automatically protected by your company’s security rules and labeling, so you don’t have to take extra steps to keep them safe and compliant,” Microsoft explained.
How can IT admins enable this policy for Office users?
To enable this new policy, administrators need to configure the EnableCloudOnlySaveAsMode setting, which restricts users from saving Office files locally. This policy can be deployed using Group Policy or by manually updating the Windows registry. It’s available in the Administrative Template files for Office version 5516.1000 or newer. This policy applies to Microsoft 365 enterprise apps running on Windows (version 2506).
For organizations that already store Office files in the cloud, this policy helps prevent users from unintentionally saving files to local drives. Microsoft recommends that administrators inform users about the change and highlight the benefits of cloud storage, such as improved accessibility, security, and compliance.
This new policy setting is currently available in public preview for commercial customers. Microsoft expects to make it generally available for organizations worldwide later this month.
It’s important to note that enabling the cloud-only save policy can introduce some drawbacks, especially for users who rely on local storage. Without the option to save files locally, working offline or on insecure networks becomes challenging. Additionally, saving temporary or shareable files like PDFs to cloud storage may clutter OneDrive or SharePoint with unnecessary content.
Rabia has a master's degree in Software Engineering and she has years of experience writing professionally about Microsoft products and other technologies. Rabia has also written for OnMSFT.com as well as Windows Report. She is always up to date on t...
