As of this month, that might no longer be an issue.

On May 30th, M-Files and Microsoft announced a brand new strategic partnership that promises to transform how companies use both systems. According to the press release, M-Files is now the first document management system to natively store content within Microsoft 365.

Why Microsoft 365? 

First, let’s consider why M-Files chose Microsoft 365 to partner with in the first place. Microsoft 365 empowers businesses and employees by providing a single, integrated platform that keeps teams connected and productive no matter where they are. With real-time co-authoring in Word, Excel, and PowerPoint, colleagues can work on the same document simultaneously without worrying about version conflicts. Microsoft Teams brings chat, video conferencing, and file sharing together in one hub, reducing the clutter of endless email threads and ensuring that every conversation and file is easy to find. Meanwhile, OneDrive syncs files across desktop, web, and mobile, so employees have instant access to the documents they need—whether they’re working from headquarters, home, or on the road.

Security and compliance are built into the very foundation of Microsoft 365, giving IT teams the tools to safeguard corporate data without disrupting users. Advanced threat protection and identity management help defend against phishing, malware, and unauthorized access, while integrated compliance solutions simplify audits, legal holds, and data-retention policies. Centralized device management lets administrators enforce security policies, deploy updates, and even wipe lost or stolen devices remotely, ensuring that sensitive information remains protected at all times.

Copilot in Microsoft 365 adds another layer of value by harnessing AI to draft emails, analyze data trends in seconds, and generate presentation outlines, so employees spend less time on routine tasks and more time on strategic work.

All in all, Microsoft 365 provides unparalleled content creation, AI, and collaboration tools and capabilities that will greatly enhance the M-Files experience. On the other side, M-Files provides industry-specific knowledge, client information management, and process automation that can extend Microsoft 365’s utility in day-to-day business processes.

Who Will Benefit from this Partnership? 

Before we jump into the features and benefits of this partnership, it’s important to clarify whom this partnership will affect: M-Files customers who have a Cloud plan as well as a Microsoft 265 ecosystem. Cloud customers in the Google Workspace or other ecosystems, as well as those customers who have an on-premises solution, will not experience any changes.

How Does the Partnership Work? 

In short, M-Files Cloud will now use Microsoft 365 and its new API-only repository SharePoint Embedded to store M-Files documents by default. SharePoint Embedded is a scalable content storage repository that Microsoft products like Copilot, Designer, and more will use. In this new partnership, M-Files and SharePoint Embedded are unified into one system, with M-Files providing the user interface and SharePoint Embedded providing the document storage instead of Azure (although companies can choose to remain on Azure if they prefer). This will allow customers to keep their documents within the security of Microsoft 365 while maintaining the ease of use of M-Files.

Developers can also use SharePoint Embedded’s API to create AI-powered apps compatible with the system. Through the power of Microsoft Copilot, it even includes support for the development of agentic AI (AI that does things, not just writes things) within each system.

Another Microsoft feature that is integral to this partnership is Microsoft Purview. Purview is a set of security tools that governs, protects, and scans your system. In the new partnership, all your documents will be within the Purview system, providing even more levels of security and stronger compliance capabilities than M-Files alone.

How Will This Affect My M-Files Experience? 

Thankfully, this change will not alter the fundamental M-Files UI or interface. Switching to SharePoint Embedded is a back-end change, meaning that you won’t see a drastic change within the user-facing M-Files system itself. However, there will be changes and upgrades, especially in the content creation process. Here are some of the main benefits that will come with the new partnership:

• ROI: One of the biggest benefits of this partnership is that your organization can avoid expensive custom development or integration with Microsoft 365, thus increasing the ROI of M-Files and Microsoft 365. If you need to integrate into a different system, your developers or your M-Files vendor can build apps themselves that connect to SharePoint Embedded through their APIs.
• Security: As we mentioned above, this partnership will move your documents from Microsoft Azure to SharePoint Embedded, placing them under the protection of Microsoft Purview. In addition to information security, Purview includes data loss prevention and insider risk management. All your Microsoft 365 security, governance, and permission policies will apply to these M-Files documents.
• Collaboration: Through this partnership, you can eliminate significant data silos within your organization. You can now co-author and collaborate on documents within the familiar Microsoft 365 interface—no need to switch to M-Files itself.
• GenAI: Microsoft Copilot and M-Files Aino are now connected and can work together on your business data. Your Copilot will now have native access to content curated by Aino. M-Files brings unique industry knowledge and specific business data to Copilot, allowing your employees access to accurate information instantaneously. Through the Visual Studio Code extension, you can limit the AI’s responses to a specific file, folder, or database.
• Agentic AI: Agentic AI is the next big step in AI development beyond GenAI. With SharePoint Embedded, your developers can begin creating AI agents that reference your database and feed that data into Teams or other Microsoft 365 applications.

Of course, these benefits just scratch the surface of what’s possible now that M-Files and Microsoft have teamed up. As each company rolls out new features, you can expect exciting new updates that make the user experience even more streamlined, automated, secure, and intuitive.

What Does Migration Entail? 

For customers who have an M-Files Cloud solution, migration shouldn’t take too much effort. M-Files will handle migrating documents from Azure to SharePoint Embedded internally. The only thing that customers will need to do is have their admin activate the M-Files application within the Microsoft admin console. And don’t worry—these documents don’t count towards your Microsoft 365 storage volume limit.

What’s Next? 

So, what now? If your business has yet to invest in a document management system, perhaps this is a sign that now is the time, especially for those who already use Microsoft 365 for daily business. If your company has already invested in Microsoft 365 and M-Files Cloud, then you may be looking for training and new ways to use your systems to the fullest possible extent.

Either way, we’re here to help! Whether you’re looking for an implementation partner, an integration expert, or a training consultant, Laminin can do the job. Contact us today to get started!