Microsoft is retiring the email passcode system long used to grant temporary access to shared files in SharePoint Online and OneDrive for Business. The company plans to replace it with Microsoft Entra B2B guest accounts, shifting external collaboration toward a fully identity-based model across Microsoft 365.

The change affects both commercial and government cloud environments. Beginning in May 2026, new external sharing invitations will start using Entra B2B instead of the existing one-time passcode system. The transition will accelerate through the summer, with the older authentication method beginning its shutdown in July and disappearing completely by the end of August 2026. [Read more…]