Introduction

Microsoft 365 continues to evolve rapidly, addressing user feedback and the dynamic needs of today's hybrid work and learning environments. The May 2025 updates introduce a suite of enhancements aimed at improving collaboration, bolstering security, and increasing accessibility across various applications.

Enhanced Collaboration Features

Microsoft Teams: "Files" Tab Renamed to "Shared"

In an effort to streamline content management within Teams channels, the "Files" tab has been renamed to "Shared." This update consolidates all documents, files, and links shared during conversations into a single, easily accessible location, reducing the time spent searching for resources and enhancing team productivity.

Microsoft Teams: Advanced Spell Checking with Multi-Language Support

Recognizing the global nature of modern workplaces, Teams now offers enhanced spell-checking capabilities supporting up to three languages simultaneously. Users can switch between languages seamlessly, with real-time misspelling alerts and the option to add words to a personal dictionary. This feature ensures clear and professional communication across diverse teams.

Security Enhancements

Exchange Online: Introduction of Tenant External Recipient Rate Limits (TERL)

To mitigate potential misuse and enhance security, Microsoft has implemented new outbound email limits in Exchange Online. The Tenant External Recipient Rate Limits (TERL) cap the number of external recipients a tenant can email daily, based on the number of purchased email licenses. This measure aims to prevent spam and ensure service availability for all users.

Accessibility Improvements

OneDrive: Known Folder Move (KFM) Setup Prompt

OneDrive introduces a setup prompt for Known Folder Move (KFM), encouraging users to back up their important files. This feature simplifies the process of protecting critical data by guiding users through the setup, ensuring their documents are securely stored in the cloud.

OneDrive: Improved Folder Shortcut Naming

To enhance clarity and organization, shared folder shortcuts in OneDrive now include prefixes. This update helps users quickly identify and access shared resources, improving overall file management efficiency.

Implications and Impact

These updates reflect Microsoft's commitment to fostering a more collaborative, secure, and accessible digital workspace. By refining existing features and introducing new capabilities, Microsoft 365 continues to adapt to the evolving demands of hybrid work environments, empowering users to work more effectively and securely.

Technical Details

  • Microsoft Teams "Shared" Tab: The renamed tab aggregates all shared content within a channel, including documents from the channel's document library and files shared in conversations.
  • Multi-Language Spell Checking in Teams: Users can select up to three languages for spell checking in Teams settings. The feature provides real-time spelling corrections and allows customization through a personal dictionary.
  • TERL in Exchange Online: The new outbound email limits are calculated using the formula: INLINECODE0 . For instance, a tenant with one license has a limit of approximately 10,000 external recipients over a 20-hour period.
  • OneDrive KFM Setup Prompt: Users without KFM enabled will see a banner prompting them to back up their files, facilitating easier setup and ensuring data protection.
  • OneDrive Folder Shortcut Naming: Shared folder shortcuts now include prefixes for better clarity, aiding users in quickly identifying shared resources.

Conclusion

The May 2025 updates to Microsoft 365 introduce significant enhancements that improve collaboration, security, and accessibility. These developments demonstrate Microsoft's ongoing dedication to providing tools that meet the needs of modern work environments, enabling users to collaborate more effectively and securely.