It is written in this article:
"Today, we are announcing that, effective October 1, 2022, we will begin to permanently disable Basic Auth in all tenants, regardless of usage, with the exception of SMTP Auth."
In addition, SAP writes in its Note No. "3236845 - Basic Authentication Deprecation in Exchange Online and its effect of sending emails from a SAP system":
As per Microsoft article https://techcommunity.microsoft.com/t5/exchange-team-blog/basic-authentication-deprecation-in-exchange-online-may-2022/ba-p/3301866 it is planned that on October 1, 2022 Microsoft will start to turn off Basic Authentication use with Exchange Online for their worldwide multi-tenant service.
If your SAP system is using Exchange online and SMTP AUTH for the transmission of Emails, you are wondering how this Deprecation of Basic Authentication will effect Email transmission in your system?
Resolution
SMTP Auth (which is used by Output Control) is exempt from the basic authentication deprecation in Microsoft Exchange Online. So there will be no effect on the transmission of email using SMTP AUTH and Exchange Online in a SAP system.
This is mentioned in Microsoft Article: https://docs.microsoft.com/en-us/azure/virtual-machines/workloads/sap/exchange-online-integration-sap-email-outbound => SMTP Auth was exempted from the Basic Auth feature sunset process.
See Also
Also SAP have plans to support SMTP and OAuth in the future which could be used instead of SMTP AUTH however at the moment there is no estimate as to when that will be.
My question:
Will SMTP AUTH be disabled or not? If you currently use SMTP AUTH in your tenant, can I assume that Microsoft currently has no plans to disable SMTP AUTH for the case?
Or are there plans to disable SMTP AUTH in the future without exception?
Reading the SAP Note, one could think that the whole action of Microsoft does not affect outgoing mails with SMTP AUTH at all.