Published:
Sep 4, 2025
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Modified:
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7
min read

Why Microsoft 365 Security Demands More Than Native Tools

Ivan Fioravanti
Ivan Fioravanti, Co-founder and CTO for CoreView, uses his system engineer and .NET development skills to lead CoreView’s technology team. He’s passionate about AI, automation and all things Microsoft 365.

Mastering Microsoft 365 security means understanding both the strengths and the boundaries of Microsoft 365 native tools and knowing why best-in-class protection requires a broader approach using third-party tools.

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Executive summary:

Microsoft 365 offers robust native security tools, but operational and visibility gaps remain, even for well-licensed enterprises. Relying solely on built-in tools leaves organizations vulnerable. To achieve true resilience, enterprises must integrate third-party solutions like CoreView, extending security beyond Microsoft’s out-of-the-box capabilities. This blog explores Microsoft 365’s security stack, its real-world gaps, and best-practice approaches for unifying and fortifying your environment against advanced threats, insider risks, and evolving compliance demands.

For all their power, even a fully licensed Microsoft 365 E5 environment leaves enterprise security teams exposed. Forrester cautioned that relying solely on native cloud security tools is a risk, and most organizations will need to turn to external consultants and tools to close visibility and control gaps. 

This means extending security beyond the out-of-the-box Microsoft 365 capabilities by integrating third-party platforms that deliver advanced security and resilience features. In other words, Microsoft 365 security means knowing where native defenses end and where non-Microsoft tools are critical for end-to-end resilience.

Microsoft 365’s Built-in Security Tools

Microsoft 365 includes a suite of integrated security and compliance tools designed to protect identities, data, devices, and collaboration environments. For CIOs, CISOs, and CTOs, understanding these tools — and how they work together — is critical to building a cohesive security strategy.  

Microsoft Defender: A Multi-Vector Security Suite

Microsoft Defender is not one product but a security family under the Microsoft 365 Defender umbrella, with different solutions for different threat vectors. Defender is designed to protect email and collaboration tools from phishing, malware, and malicious links. Underpinned by AI, Defender protects against phishing, email compromise, ransomware and other threats by checking link and attachment safety and enforcing your anti-phishing policies.  

Key features include:  

  • Safe Links & Safe Attachments 
  • Anti-phishing policies 
  • Zero-Hour Auto Purge (ZAP) 
  • Threat Explorer & Attack Simulation Training 

Ideally, organizations will apply policies to all users, not just to executives – phishing targets everyone. 

Microsoft Defender for Endpoint (MDE) is endpoint detection and response (EDR) for Windows, macOS, Linux, iOS, and Android.  

Key features include:  

  • Behavioral-based attack detection 
  • Device risk scoring 
  • Attack Surface Reduction rules 
  • Automated investigation and remediation (AIR) 

Organizations should integrate MDE with conditional access to block high-risk devices in real time. 

Microsoft Defender for Identity detects advanced identity threats in on-prem Active Directory environments. 

Key features include:  

  • Lateral movement detection 
  • Pass-the-Hash/Pass-the-Ticket detection 
  • Privileged group membership changes 

Organizations should deploy sensors to all domain controllers for full coverage. 

Microsoft Defender for Cloud Apps (formerly MCAS) is for discovering and securing SaaS usage. 

Key features include:  

  • Shadow IT discovery 
  • OAuth app permission governance 
  • Real-time session controls 

Organizations should use session controls to block downloads of sensitive data from unsanctioned cloud apps. 

Microsoft Secure Score: A Good Start, but Not a Complete Picture

Microsoft Secure Score is a framework designed to promote good security practices inside Microsoft 365 and a security posture measurement tool offering improvement actions you can take. 

From a dashboard within Microsoft Defender, you can follow a structured process for improving your security posture, then see how you’re doing with a simple percentage score. While this provides a good at-a-glance view of your security, it is by no means exhaustive and requires a lot of manual handling. 

Key features include:  

  • Organization-wide security score 
  • Control-by-control recommendations 
  • Trend tracking over time 

Organizations should treat Secure Score as an operational KPI to review monthly and track improvements in an ongoing manner. 

Microsoft Sentinel: SIEM and Automation at Scale

Microsoft Sentinel is cloud-native security information and event management (SIEM) and security orchestration, automation, and response (SOAR). It collects data from across your Microsoft 365 environment and uses it to highlight risks and potential threats.  Operationalizing Sentinel often requires significant resources, custom integrations, and expertise to close the visibility and workflow gaps.

Sentinel can also be connected to your non-Microsoft software, enriching your data pool for more accurate insights into baseline usage and trends that may indicate an attack. 

Key features include:  

  • Aggregated logs from M365, Azure, on-prem, and third-party sources 
  • Analytics rules and custom detections 
  • Automated playbooks (Logic Apps) 

Organizations should use Microsoft-provided Sentinel workbooks for M365 security data visualization. 

Microsoft Purview 

Microsoft Purview is a unified platform for compliance, data protection, and governance.  

Key features include:  

  • Sensitive labels and auto-labeling 
  • Data Loss Prevention (DLP) 
  • Information governance and records management 
  • Insider risk management 
  • Communication compliance 

Organizations should integrate Purview with Microsoft Defender for coordinated data protection.  

Entra ID Protection (formerly Azure AD Identity Protection) 

Entra ID Protection offers real-time identity risk detection and remediation.  

Key features include:  

  • Sign-in and user risk scoring 
  • Automated remediation policies  
  • Risk-based conditional access  

Organizations should pair Entra ID Protection with privileged identity management (PIM) for a secure admin life cycle. 

Microsoft 365 Compliance Center 

M365 Compliance Center is a centralized portal for compliance-related policies and reports.  

Key features include:  

  • Audit log search 
  • Compliance score 
  • Regulatory compliance templates 

Organizations can use Compliance Score in parallel with Secure Score to get a balanced overview of their security and compliance posture.

Also key, beyond Microsoft’s native security stack and how important its full configuration and deployment are to its effectiveness, is the understanding that some critical security functionality is missing from the M365 suite of tools. This should be augmented by a combination of security-by-design principles and third-party solutions that help deliver a more comprehensive and complete security posture. 

The Real-World Gap: Limited or Missing Functionality in M365 Native Security Tools  

Microsoft 365’s native security capabilities are not comprehensive. Even in an E5 license environment with the full suite of Microsoft Defender, Purview, Sentinel, and Entra ID Protection, there are visibility gaps, operational limitations, and automation challenges that enterprise security leaders must address. 

Insider Threats and Human Error 

While Microsoft Defender and Microsoft Sentinel can help detect unusual behavior and potential insider threats, the human element remains a critical vulnerability. Insider threats and human errors, such as falling for phishing scams, using weak passwords, or misconfiguring systems, can lead to security breaches that these tools might not always predict or prevent. 

Fragmented Visibility Across Portals  

Security signals are spread across all of the native Microsoft security tools, which means security teams spend a lot of time pivoting between siloed system and may miss correlated threats. Resulting slower detection thresholds means that incident response is equally delayed.  

Advanced Persistent Threats (APTs) 

APTs are sophisticated, long-term attacks by highly skilled adversaries targeting specific organizations. While Microsoft's tools are designed to detect and mitigate many forms of cyberattacks, the highly customized nature of APTs means that some attacks might bypass detection mechanisms, especially in their initial stages. 

Supply Chain Attacks 

Attackers increasingly target software suppliers and other third-party vendors as a means to gain access to their primary targets. While Microsoft's security solutions offer ways to monitor and secure your environment, they may not fully cover the complexities of assessing and mitigating risks introduced by third-party vendors and software. 

Limitations on Multi-tenant Management 

Native Microsoft tooling is designed to manage single-tenant architectures. Holding companies and global organizations with multiple tenants cannot easily manage policies or manage security posture centrally. Again, it becomes almost impossible to monitor and manage threats under these conditions. 

Lack of Granular Delegated Administration 

Native role-based access control (RBAC) does not enable fine-grained control over granting privileges, which means that admins may have unintended access to sensitive systems or data.  

Overhead and Manual Operations

Routine security tasks, such as license compliance checks, stale account cleanup, role change reviews, demand manual work or PowerShell scripts, and the tedium of these tasks exposes organizations to risk from human error as well as operational bottlenecks.  

Reactive, Not Predictive, Security Posture 

Microsoft’s native tools focus on detection and response. Proactive governance and preventive alerts require extra configuration or external tools. This can lead to a gradual erosion of Zero Trust enforcement. 

How to Achieve Best-Practice Security in M365: CoreView as an Essential Tool

A truly resilient Microsoft 365 environment demands more than configuration and compliance checklists. Best-practice security requires unified, ongoing visibility across all tenants and workloads.

This is where CoreView acts as a control plane to augment your native M365 security stack: 

Follow the CoreView M365 Best Practices Guide

The comprehensive guide to M365 security best practices is a great place to start, even before you think about tooling.

Centralized Security Visibility

CoreView brings all critical signals together—MFA status, privileged roles, guest user activity, license usage—on a single dashboard for rapid detection and executive reporting. 

Multi-Tenant and Granular Delegated Administration

Native M365 falls short with complex, multi-tenant environments. CoreView enables consistent policy enforcement, cross-tenant threat monitoring, and targeted admin delegation via Virtual Tenants—reducing the risk of excessive privilege.

Automated Security Operations

Eliminate manual PowerShell scripts and routine admin chores. CoreView automates privilege change alerts, cleanup of inactive users, compliance checks, and more, reducing human error and freeing up security teams’ time for higher-value work.

Security Governance at Scale

Enforce policies proactively and continuously, not just during audits. CoreView’s governance engine keeps your security aligned to Zero Trust principles and prevents configuration drift.

Accelerated Incident Response

With real-time contextual insight and rapid alerting, CoreView empowers security teams to contain threats faster and respond with agility.

Secure your Microsoft 365 Environment: Don’t Let Tooling Gaps Define Your Risk

Microsoft 365’s built-in security tools are powerful, but stopping there means accepting operational gaps, visibility challenges, and the ongoing risk of misconfiguration and oversight. A best-practice Microsoft 365 security strategy relies on enhancing these native tools with automation, governance, cross-tenant visibility, and true least-privilege delegation.

CoreView is purpose-built to close these gaps, ensuring you don’t just react to threats but get ahead of them. Think of M365 as your security engine, and CoreView as the control system keeping it running smoothly, securely, and resiliently. 

Ready to move from good enough to best-in-class Microsoft 365 security and resilience? Discover how CoreView can help.

Get a personalized demo today

Created by M365 experts, for M365 experts.