Dave Anstey
Director of Business Development & Partner Relations
Don’t Panic!
.
.
…is the iconic phrase printed on the cover of The Hitchhiker’s Guide to the Galaxy, the fictional guidebook from Douglas Adams’ sci-fi comedy series.
Those words also have special meaning when it comes to Microsoft’s support for their Office 365 Exchange SMTP Basic Authentication protocol.
Due to its outdated security, Microsoft has been keen to remove it and ‘encourage’ users to move to a more secure and ‘modern’ system. Microsoft confirms that before SMTP Basic Authentication is eventually removed, developers and systems can switch to OAuth 2.0 with SMTP or skip SMTP entirely and use the Microsoft Graph API to send email.
Microsoft’s latest position as of February 2026 (subject to change) is shown in this communication – SMTP Basic Auth – and this is summarised below (with sources):
- Now → December 2026:
> SMTP AUTH Basic Authentication continues unchanged. [techcommun…rosoft.com]
- End of December 2026:
> Disabled by default for existing tenants, but admins can re-enable.
> New tenants: SMTP AUTH Basic is unavailable by default. OAuth required. [techcommun…rosoft.com]
- Second half of 2027:
> Microsoft will announce the final removal date. [techcommun…rosoft.com]
So, what action do you need to take as a Unit4 Financials by Coda system user?
Well, you’ll be pleased to hear that the Product Team at Unit4 have already got your back as they have added support for Microsoft Graph API, and you are at liberty to switch to that anytime between now and the final SMTP Basic Authentication removal date (announcement in second half of 2027). This new feature was delivered in the Q12025 release of Unit4 Financials by Coda.
Now, if you have any custom software that uses SMTP for e-mail distribution, then you should start thinking about having it changed sooner rather than later so you’re not caught out.
That’s where LEVEL8 comes in. As experts in custom/bespoke solutions and a renowned safe pair of hands within the Coda community, we’re ready and able to help you update your custom software – just get in touch and we’ll run through how we can help.
And if you already have LEVEL8 custom software, then rest assured we will be reaching out to you with the options available in due course. If you’re not ready by the initial ‘disabled by default’ timeline (currently end 2026), don’t forget that you can ‘enable’ it again using Administrator rights and this will last until the eventual absolute ‘removal’ date (currently end 2027).
Until then, “So long, and thanks for all the fish”.
