check before: 2025-08-01
Product:
Entra, Microsoft 365 Apps, OneDrive, Purview, Purview Communication Compliance, Purview Data Loss Prevention, Purview Information Protection, SharePoint, Windows
Platform:
Android, iOS, Mac, Online, US Instances, Web, World tenant
Status:
Change type:
New feature
Links:
Details:
Summary:
IT Administrators can restrict new file creation in Word, Excel, and PowerPoint on Windows to Cloud Locations only, enhancing security and compliance. This policy, deployable via Group Policy from August 2025, limits saving new files to OneDrive, SharePoint, or third-party Clouds, promoting cloud usage and protection.
Details:
Introduction
IT Administrators will be able to set up Word, Excel, and PowerPoint Windows applications to limit the creation of new files to only Cloud Locations (OneDrive, SharePoint, or third-party Clouds).
This configuration is called enablecloudonlysaveasmode is available only to IT Administrators and deployed using Group Policies. This policy is available now in the Administrative Template files for Microsoft Office (version 5516.1000 or newer).
For the policy to apply, users should be using a Windows version of Word, Excel and PowerPoints Version 2506 (Build 19029.20000) or newer.
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.
This policy setting controls whether Word, Excel, and PowerPoint users can use non-Cloud locations (local and network) to create new files. If you enable this policy setting, users will only have Cloud Locations available to perform Save As and Save new files. If you disable or don't configure this policy setting, users can use any location (Cloud, Local, and Network) to perform Save As and Save new files. Note: This policy setting only applies to subscription versions of Office, such as Microsoft 365 Apps for Enterprise.
When this will happen
Public Preview: We will begin rolling out late August 2025 and expect to complete by mid-September 2025.
General Availability (Worldwide, GCC, GCC High, and DoD): We will begin rolling out mid-September 2025 and expect to complete by late September 2025.
Change Category:
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Scope:
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Release Phase:
Created:
2025-08-19
updated:
2025-08-19
Task Type
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Docu to Check
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MS How does it affect me
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MS Preperations
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summary for non-techies**
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Direct effects for Operations**
Restriction of File Creation
Users will only be able to create new files in Cloud Locations, limiting their ability to save files locally or on network drives.
- roles: End Users, IT Administrators
- references: https://learn.microsoft.com/entra/identity/domain-services/manage-group-policy, https://learn.microsoft.com/microsoft-365-apps/admin-center/overview-cloud-policy
" target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/microsoft-365-apps/admin-center/overview-cloud-policy
User Experience Impact
Users accustomed to saving files locally may face disruptions and frustration due to the sudden unavailability of local save options.
- roles: End Users, Support Staff
- references: https://learn.microsoft.com/sharepoint/redirect-known-folders, https://www.microsoft.com/download/details.aspx?id=49030
Compliance and Security Enhancement
Files created in the Cloud will automatically be subject to organizational compliance policies, enhancing data security but potentially complicating user workflows.
- roles: Compliance Officers, IT Administrators
- references: https://learn.microsoft.com/microsoft-365-apps/admin-center/overview-cloud-policy, https://config.office.com/officeSettings/officePolicies
Configutation Options**
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Opportunities**
Enhanced Data Security and Compliance
By restricting new file creation to cloud locations, the organization ensures that all files are automatically subject to security rules and compliance policies, reducing the risk of data breaches and enhancing overall data governance.
- next-steps: Conduct a risk assessment to identify current vulnerabilities in local file storage and communicate the benefits of cloud storage to users. Provide training sessions on cloud security features.
- roles: IT Administrators, Compliance Officers, Data Protection Officers
- references: https://learn.microsoft.com/purview/compliance-overview, https://learn.microsoft.com/microsoft-365/compliance/data-loss-prevention-overview
Improved Collaboration and Productivity
Limiting file creation to cloud locations facilitates easier collaboration among teams. Users can work on shared documents in real-time, leading to increased productivity and reduced version control issues.
- next-steps: Promote the use of collaboration tools integrated with Microsoft 365, such as Teams and SharePoint. Organize workshops to train users on effective collaboration practices using cloud-based tools.
- roles: Team Leaders, Project Managers, HR Managers
- references: https://www.microsoft.com/en-us/microsoft-365/blog/2020/07/07/how-to-improve-team-collaboration-with-microsoft-teams/, https://www.microsoft.com/en-us/microsoft-365/sharepoint/collaboration
Cost-Effective IT Management
With the policy in place, IT can reduce costs associated with local storage solutions and maintenance. By promoting cloud storage, the organization can also decrease the need for local hardware and backup solutions.
- next-steps: Analyze current storage costs and identify potential savings from transitioning to cloud-only storage. Prepare a cost-benefit analysis to present to management.
- roles: CIOs, Finance Managers, IT Administrators
- references: https://www.forbes.com/sites/bernardmarr/2020/09/07/how-cloud-computing-can-save-you-money/?sh=6f6c9f2b2c67, https://www.microsoft.com/en-us/microsoft-365/cloud-computing
Potentional Risks**
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Data Protection**
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IT Security**
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DPIA Draft**
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explanation for non-techies**
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** AI generated content. This information must be reviewed before use.
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