Why Microsoft 365 needs a SaaS security strategy

Cloud-based solutions have become essential for modern organizations striving to stay competitive in a fast-changing digital economy. Among these tools, Microsoft 365 remains a top choice for businesses large and small. While Microsoft 365 is widely adopted to drive productivity and enable collaboration, many businesses struggle to secure their data and users from evolving cyberthreats.

Microsoft has several built-in security features, such as Defender, MFA and DLP, that offer baseline protection. However, businesses and MSPs must remember that these native protections alone aren’t enough to tackle today’s sophisticated threats.

This article explores why relying solely on Microsoft’s security features can be a costly mistake for MSPs and their clients — and why a layered, proactive defense strategy is essential to keep them fully protected.

Why Microsoft 365 is a prime target

For businesses, Microsoft 365 is a productivity suite that offers an extensive list of SaaS apps to collaborate seamlessly and execute critical business operations efficiently. But for cybercriminals, it’s a goldmine of mission-critical data.

An organization’s Microsoft 365 environment holds large volumes of data — emails, business contracts, intellectual property, HR records, financial information and client communications. Invaluable data across Outlook, SharePoint, OneDrive, Teams and other apps draws threat actors towards it. The interconnected nature of Microsoft 365 also means that a single compromised credential gives threat actors the keys to the kingdom.

Microsoft 365’s built-in security tools and their limitations

Microsoft takes cybersecurity very seriously and invests heavily in the latest technologies to secure its infrastructure, data centers and networks. Some of Microsoft 365’s key default security features include Microsoft Defender for Office 365, MFA, Conditional Access (in Microsoft Entra ID) and data loss prevention policies. These built-in security tools offer a solid foundation; however, they weren’t designed to offer comprehensive protection like dedicated SaaS security solutions do.

They are reactive in nature. By the time you realize there’s a threat, attackers are already inside your Microsoft 365 environment. Additionally, as many of these defenses rely on known threat patterns and user policies, sophisticated attacks using zero-day exploits or social engineering can bypass them.

Microsoft’s native tools may not provide complete visibility, such as granular monitoring of user behavior, OAuth abuse or third-party app integrations, which are critical in an ever-expanding SaaS world. While Microsoft provides real-time threat detection and containment, especially on endpoints and emails, responding to threats in real time may require additional configuration, licensing and manual intervention.

Why MSPs need a robust M365 security strategy

On one hand, cyberattacks are becoming more sophisticated. On the other hand, industry regulations are getting stricter. Perpetrators are increasingly leveraging automation, AI-driven phishing and compromised OAuth tokens to slip past default defenses. As defenders of your clients’ digital environments, users and data, you can’t afford to be complacent.

Moreover, according to Microsoft’s shared responsibility model, the customer (and, by extension, their MSP) is responsible for data security, access controls, user behavior and compliance.

Failing to implement a proactive, multilayered M365 security strategy can result in credential compromise, data exfiltration, lateral movement across apps, downtime, reputational damage and compliance violations.

As an MSP, you must implement layered defense strategies, including zero trust, continuous monitoring, advanced threat detection and automated response to proactively protect your clients’ SaaS environments, users and data.

How MSPs can strengthen client protection

Cyberthreats evolve rapidly. Here are some ways MSPs can stay ahead of threats and better protect their clients.

Implement third-party security solutions to complement M365

Look for third-party SaaS security solutions that offer cutting-edge defense features, such as real-time threat detection and automated remediation. Modern SaaS security tools provide comprehensive protection against emerging threats that Microsoft’s native protection may miss.

Educate clients on shared responsibility

It’s not uncommon for Microsoft 365 users to assume that their SaaS data is automatically protected. This misunderstanding could leave business-critical data at risk. As an MSP, you must position yourself as a trusted advisor and clarify what the shared responsibility model entails. As per the model, while Microsoft is responsible for securing the infrastructure and ensuring application uptime and availability, it’s up to organizations (and their MSPs) to safeguard configurations, user activity and data.

Create incident response plans specific to SaaS environments

As SaaS apps become an integral part of modern business, it’s essential to design IR playbooks tailored to cloud collaboration tools like Microsoft 365. Having a well-documented, SaaS-specific IR plan will help MSPs and their clients respond swiftly to threats, such as account takeovers, OAuth exploits or malicious external sharing.

Monitor for OAuth abuse, external sharing and user behavior

Cybercriminals are constantly looking for ways to bypass established security measures. They increasingly exploit OAuth tokens to gain access to cloud environments and live there undetected. MSPs must continuously monitor for suspicious third-party app integrations, abnormal file-sharing activity and unusual user behavior to detect threats early and stop them in their tracks.

Leverage a reliable CDR solution for real-time threat identification

Microsoft 365’s built-in security tools, such as email filtering, conditional access and Secure Score, block many common threats, but advanced attacks still evade detection. Cloud detection and response (CDR) solutions like SaaS Alerts offer MSPs real-time visibility and rapid detection capabilities that native security features in Microsoft 365 often lack. CDR solutions continuously analyze SaaS activity and flag anomalies as soon as they are detected, allowing MSPs to respond to threats quickly before they escalate into costly breaches.

Just as many organizations have adopted advanced endpoint detection and response (EDR) tools to complement antivirus and stop stealthier threats that basic AV can’t catch, the same logic applies to cloud security. Microsoft’s native defenses provide a baseline of protection, but without CDR, sophisticated attacks are far more likely to slip through unnoticed.

How SaaS Alerts strengthens Microsoft 365 security

SaaS Alerts protects your clients’ Microsoft 365 environments 24/7. It uses machine learning to detect suspicious behavior in real time, automatically locks compromised accounts based on rules you set and shuts down potentially dangerous activity like risky file sharing.

Our industry-leading cloud detection and response platform detects threats early in the attack cycle, giving you valuable time to respond before they disrupt your clients. SaaS Alerts also delivers powerful reporting and visibility, so you can prove your value while strengthening SaaS defenses. With our Fortify module, you can apply security recommendations across all your clients in minutes and get alerted if a security score regresses. Additionally, the SaaS Alerts Unify module adds an extra layer of protection by linking your clients’ SaaS apps with managed devices to enhance user validation.

“SaaS Alerts is a critical layer delivering protection to our clients. It gives us real-time visibility and remediation protection against cloud threats that would otherwise be impossible without SaaS Alerts.” — Mark R, Principal, Zephyr Networks

To protect your clients effectively, you must first build a solid cybersecurity foundation. Download the SaaS security checklist now for expert tips and actionable strategies to cover your clients’ SaaS like a pro.