Managing data in Microsoft 365 can get overwhelmingly fast. With sensitive files scattered across SharePoint, OneDrive, and Teams, ensuring security feels like an uphill task.
That’s where data classification comes in. It lets you organize your data, pinpoint critical information, and apply the right protections to stay compliant and minimize risks.
Here’s how to implement data classification in Microsoft 365 using its built-in tools for secure and efficient management.
Classifying Data Using Microsoft Purview
Microsoft Purview helps you organize and protect data in Microsoft 365. It assigns sensitivity labels to files, emails, and meetings, ensuring critical information is secure. You can apply these labels automatically based on rules or allow users to assign them manually.
Follow these steps to get started:
1. Open the Compliance Portal
Log in to the Microsoft Purview compliance portal. Navigate to Information Protection and select Labels. Click on Create a Label to start.
Provide a name, display name, and descriptions for users and admins to explain its purpose. Set the label’s priority and choose a color for easy identification.
2. Define Label Scope
Choose where the label applies. Options include files, emails, meetings, or containers like Teams sites and SharePoint groups. This ensures labels are used only where relevant.
3. Set Protections
Configure security settings for the label. Add encryption, headers, or watermarks as needed. For example, you might encrypt documents labeled as Confidential or add watermarks to files shared externally.
4. Enable Automatic Labeling (Optional)
Define conditions for automatic application of labels. For instance, configure rules to apply the Confidential label to documents containing credit card numbers or personal details.
5. Publish the Label
Head to Label Policies to publish the label. Assign it to specific users or groups, or make it available to all users. Configure default settings, like applying a specific label to all new Word documents. Once done, activate the policy to make the label accessible in apps like Word, Excel, and Outlook.
Using these steps, you can set up data classification with Microsoft Purview, ensuring your sensitive information is labeled and protected consistently.
Using Built-In Features of Microsoft 365
Beyond Microsoft Purview, Microsoft 365 offers several built-in tools that can help with data classification. These options are ideal for organizations that want basic functionality without upgrading their subscription.
Apply Retention Labels in SharePoint and OneDrive
Assign retention labels to manage how long files stay and when the system deletes them. For example, use a Confidential label to keep files for seven years before removal.
To set up retention labels:
- Open the Microsoft 365 Compliance Center.
- Select Records Management and create a retention label.
- Set the retention period and actions, such as deletion or archiving.
Use Data Loss Prevention (DLP) Policies
DLP policies identify and block sensitive information from being shared improperly. For instance, set a rule that stops users from sending files containing credit card numbers outside the organization.
Steps to implement:
- Access the Compliance Center and click on Data Loss Prevention.
- Create a new policy and choose a relevant template, like GDPR or HIPAA.
- Define conditions, such as detecting Social Security numbers or financial data.
Manually Assign Sensitivity Labels in Office Apps
Allow users to tag documents and emails directly in apps like Word or Excel. For example, a team member working on a confidential project can apply a Restricted label to their file. These labels enable built-in protections, such as encryption or restricted sharing.
Microsoft 365 License Requirements
Understanding Microsoft 365 license options is crucial before implementing data classification:
- Microsoft 365 E5/A5/G5: Required for full Microsoft Purview Information Protection features
- Compliance Administrator (or equivalent): Needed for access
- 90-day Trial: Available through Microsoft Purview compliance portal for non-E5 customers
If you’re unsure about licensing requirements, a managed IT services provider can help evaluate your needs and optimize costs.
Professional Implementation Support
Setting up data classification can be complex. A managed IT services company can provide valuable support by:
Setting Up Your Environment
They’ll help configure your policies, set up automatic classification rules, and ensure your security settings align with your needs.
Training Your Team
Professional service providers can create training programs to help your employees understand how to use labels effectively and follow security policies.
Maintaining Your System
They’ll monitor classification effectiveness, adjust policies as needed, and keep your system updated with the latest security features.
Beyond Microsoft Purview
While Microsoft Purview provides extensive classification capabilities, some organizations explore third-party classification tools. Let’s examine what these alternatives offer and their considerations.
Netwrix Data Classification offers pattern matching and term detection across various platforms. However, implementing and maintaining it requires technical expertise and ongoing management.
Varonis Data Classification Cloud operates across multiple cloud services. Organizations considering this solution need to consider the complexity of setup, training requirements, and integration challenges with existing systems.
BigID uses machine learning for classification. While this can help with complex data types, it needs significant configuration and monitoring to maintain accuracy.
Important Considerations
Before implementing third-party tools, evaluate:
- Implementation costs beyond initial licensing
- Staff training requirements
- Integration complexity with existing systems
- Ongoing maintenance needs
- Technical support availability
Conclusion
Data classification starts with clear steps: picking tools, setting rules, and labeling documents. Yet success goes beyond checking boxes. Seeing a system that smoothly identifies HR files or financial records takes time. Policies need adjusting. Teams need support. Security needs updating.
Working with experienced technology partners can help ensure your classification system protects sensitive data effectively while keeping daily operations running smoothly. Look for providers with expertise in Microsoft 365 to help classify and secure your business data effectively.
