Microsoft 365 Outage: What Happened and How Small Businesses Can Stay Resilient

On Monday, Microsoft 365 users worldwide encountered disruptions that lasted over 24 hours, leaving small businesses scrambling to maintain productivity. Here’s a breakdown of the event, what caused it, and actionable steps small businesses can take to mitigate the impact of future outages.

What Happened?

Early Monday morning, on November 25th, Microsoft 365 services, including Outlook, Teams, and Exchange Online, began experiencing outages, impacting thousands of users. According to Down Detector, over 5,300 reports of issues flooded in by midday, with 85% tied to Outlook, 9% to Exchange, and 6% to SharePoint.

Microsoft identified the primary problem as a failure with Exchange Online, a cloud-based email service. Users also reported trouble accessing Teams calendars. By 9 a.m., the company had begun deploying fixes, including manual server restarts.

However, progress was slower than anticipated, with only 98% of affected users regaining functionality by late Monday morning. For some users, delays in email delivery continued well into Tuesday. Finally, by 3 p.m. EST on Tuesday, Microsoft announced full restoration of all impacted services.

The Potential Cause: Recall AI

While Microsoft didn’t confirm a direct cause, Monday also marked the rollout of Recall AI, a new feature for Windows Insiders. This tool takes “snapshots” of user activity, making it easier to search later without remembering exact dates or keywords.

Recall AI faced scrutiny during its initial launch in May due to privacy and security concerns, leading to a delayed full release. The timing of its rollout suggests the possibility that this feature might have played a role in the outage.

Key Takeaways for Small Businesses

Outages like this can severely impact small businesses that rely on Microsoft 365 for daily operations. Here are tips to stay resilient:

1️⃣ Establish a Backup Communication Plan

Outlook and Teams disruptions left many users without access to critical communication tools.

Solution:

Set up alternative platforms like Gmail, Zoom, or Slack to serve as backups during outages.

Train your team to quickly pivot to these tools when needed.

2️⃣ Monitor Outages Proactively

More than 5,300 reports on Down Detector show the importance of being aware of system-wide disruptions.

Solution:

Regularly check platforms like Down Detector and Microsoft’s official support pages for real-time updates.

Follow Microsoft’s X (Twitter) account for announcements.

3️⃣ Be Prepared for Delays

Some users experienced delayed email deliveries, even after services were restored.

Solution:

Notify your clients and team members of potential delays to manage expectations.

Adjust deadlines where necessary and consider using alternative email providers for urgent communications.

4️⃣ Diversify Your Tools

Relying solely on one provider like Microsoft can make your business more vulnerable during outages.

Solution:

Use a mix of tools for key functions like email, file sharing, and project management.

Cloud-based services from other providers can act as temporary solutions during disruptions.

5️⃣ Train Your Team on Contingency Plans

Downtime doesn’t have to mean unproductive time.

Solution:

Develop a clear contingency plan and ensure employees know how to execute it.

Include steps for accessing backup tools, communicating during outages, and prioritizing tasks.

6️⃣ Communicate Clearly with Stakeholders

The slow pace of fixes can be frustrating, but staying transparent with your team and clients helps maintain trust.

Solution:

Provide regular updates on the situation.

Reassure stakeholders that you are actively monitoring progress and taking steps to minimize disruptions.

The Bigger Picture

Outages like this remind us that no system is immune to disruptions—even for tech giants like Microsoft. For small businesses, being prepared is the best defense. Diversifying tools, having a backup plan, and staying informed can make all the difference in maintaining operations and client trust during tech hiccups.

Need help setting up an outage-proof business workflow? Reach out to us for expert advice on tools, backups, and contingency planning.