Microsoft Teams security: Comparing Microsoft Information Protection unified labeling and ShareGate's sensitivity tags

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Wondering how to stay on top of Microsoft Teams security? To answer that, we compare sensitivity labels in the Microsoft 365 compliance center with ShareGate's sensitivity tags.
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Keeping organizational data secure is a top priority for IT admins today. And, according to Microsoft MVP Joanne Klein, one of the best ways to approach data security at scale is from the perspective of container governance: security and compliance policies applied at the level of Microsoft teams and Microsoft 365 groups.
Our engineers did a ton of research into container-level data protection while developing our ShareGate release. And a large part of that process included looking at unified sensitivity labeling in the Microsoft 365 compliance center to understand the capabilities and limitations of that feature. Explore our Microsoft Teams security solutions here.
To help you assess whether Microsoft Information Protection (MIP) sensitivity labels are the right fit for your organization, we decided to share what we learned and highlight some key differences between MIP sensitivity labels and ShareGate's sensitivity tag feature.
Sensitivity labels in the Microsoft 365 compliance center
Sensitivity labels in Microsoft 365 have been around for a while, with their evolution tracing back to Information Rights Management within Microsoft 365, then Azure Information Protection (AIP) in the Azure portal, and finally, unified labeling through the Microsoft 365 compliance center.
Built-in sensitivity labels from the Microsoft Information Protection (MIP) framework are managed through a single portal—the Microsoft 365 compliance center—which unifies labeling and protection policy management across AIP, Microsoft 365, and Windows.
Sensitivity labels from the MIP solution let you classify and protect your organization's data while making sure that user productivity and their ability to collaborate aren't hindered.
You can use sensitivity labels from the MIP framework to:
- Enforce protection settings like encryption or watermarks on labeled content
- Protect Microsoft 365 content across platforms and devices
- Extend sensitivity labels to protect content in third-party apps and services
- Protect containers that include Teams, Microsoft 365 groups, and SharePoint sites (requires an Azure AD Premium P1 license)
Up until recently, it was only possible to apply sensitivity labels to emails or documents. Last year, Microsoft introduced the ability to use sensitivity labeling to classify and protect containers.
Sensitivity labels in Microsoft Teams
As you're probably aware by now, Microsoft Teams is closely tied to Microsoft 365 Groups and SharePoint Online team sites. So, if you've published sensitivity labels that have site and group settings enabled, those labels can also be applied to a team in Microsoft Teams.
Sensitivity labels function the same way in Teams as they do in SharePoint and Microsoft 365 Groups: depending on the label settings you've defined, a label will automatically apply changes to the team's privacy, guest access, and access from unmanaged devices (the ability to control external sharing from SharePoint sites is currently in preview).
Once you've published sensitivity labels with "Groups & sites" settings enabled, users will be able to select from a list of those sensitivity labels when creating a new team in Microsoft Teams.
In the example below, the user chose the "Confidential" label we discussed above—which automatically eliminates the option to make this team public:

Source: https://docs.microsoft.com/en-us/microsoftteams/sensitivity-labels
By default, users are not required to select a sensitivity label. If users are creating tons of new teams in a hurry, they might choose to skip this step, in which case you'll need to manually check for teams missing labels and follow up with those owners later.
Note: When publishing your sensitivity labels, you can choose to configure the corresponding label policy so that users are required to apply a sensitivity label when creating new groups or sites (and by extension, creating new teams). Head to the official Microsoft documentation to find more information on what label policies can do.
Once the team is created, the chosen sensitivity label then appears in the upper-right corner of all the team's channels:

Source: https://docs.microsoft.com/en-us/microsoftteams/sensitivity-labels
The service automatically applies the same sensitivity label to the associated Microsoft 365 group and the connected SharePoint team site, as well.
Because the "Confidential" label settings don't allow guest access, this team will only be available to users in your organization. People outside your organization can't be added to the team.
Owners can change (or remove, depending on how your label policy is configured) the sensitivity label of their team at any time within the Microsoft Teams interface. In this example, if the owner later removed the "Confidential" label, the privacy settings of the team could then be changed to public and guest users could be invited to join the team. As an IT admin, you can also set or edit team sensitivity labels in the Microsoft Teams admin center.
When applying a more restrictive sensitivity label to an existing team, it's important to note that existing guests will not automatically be removed as team members when a label setting is changed to disallow guest access—the setting will only apply to new guest access moving forward. If you're starting to apply sensitivity labels to teams with existing guests, this is something to watch out for.
Good to know:
- Currently, users are not able to apply sensitivity labels on teams created directly through Graph APIs, PowerShell cmdlets, and templates.
- Changes made to sensitivity labels outside the Teams app (i.e., by an IT admin) can take up to 24 hours to reflect in the Teams app. Additionally, any changes to a label made directly to a team's associated group or SharePoint site collection can take up to 24 hours to propagate to the Teams app.
Using sensitivity labels with Teams enables IT admins to regulate access to sensitive organization content created during collaboration within teams and also allows you to set different security settings based on each team's level of sensitivity. It's a great feature for organizations with Azure AD premium licensing that are just moving into Microsoft Teams.
However, if your organization has been using Teams or Microsoft 365 Groups for a while, then you might find yourself frustrated with the amount of manual work involved in assigning labels to all your existing groups and teams—especially if you're not a fan of PowerShell.
Not only that, but as an IT admin, you're probably not the best person to determine the sensitivity level of every single team—you're going to have to reach out to each team's owner and either ask them to assign a label to their team in the Teams app or relay that information back to you. And if you ask them to assign a label themselves, what are the chances that everyone will actually follow through?
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