Exchange Online Mailboxes: What to Know
Exchange Online
Nov 3, 2025 11:00 AM

Exchange Online Mailboxes: What to Know

by HubSite 365 about Andy Malone [MVP]

Microsoft 365 Expert, Author, YouTuber, Speaker & Senior Technology Instructor (MCT)

Microsoft expert guide to Exchange Online mailboxes in cloud for admins, how they work, manage, and secure.

Key insights

  • Exchange Online Mailboxes: Cloud-based accounts that provide email, calendar, contacts, and tasks.
    They work across PCs, web browsers, and mobile devices and form the core mail service in Microsoft 365.
  • User Mailboxes, Shared Mailboxes, Resource Mailboxes: User mailboxes serve individual employees.
    Shared mailboxes let teams read and send mail from a common address without separate logins.
    Resource mailboxes schedule rooms or equipment and integrate with calendars.
  • Management: Admins use the Microsoft 365 admin center or the Exchange Admin Center for GUI management.
    Use PowerShell for automation, bulk tasks, and finer configuration control.
  • Cloud-managed remote mailboxes (preview): Allow full mailbox management from the cloud without on-prem Exchange servers.
    This helps organizations retire legacy servers and simplifies administration.
  • Authentication & security: Microsoft extended basic authentication support to September 2028 but recommends moving to Modern Authentication for stronger security.
    Admins can manage DKIM and authentication settings through the admin UI and PowerShell.
  • Storage & feature improvements: Auto-archiving moves old mail to archives automatically to free mailbox space.
    Shared mailboxes default to 50 GB without a license and can reach 100 GB with an Exchange Online license.
    Outlook Web Access now lets users choose which proxy address to send from, and dynamic distribution groups resolve membership in background jobs for more reliable mail flow.

Andy Malone [MVP] recently published a YouTube video that offers a clear walkthrough of Exchange Online mailboxes, and this article summarizes the key points for editorial use. The video aims to explain not only what these mailboxes do, but also how they behave and how administrators should think about them. Therefore, the content is useful for both new admins and experienced professionals who need a quick refresher. Overall, Malone frames the mailbox as the core collaboration unit in Microsoft 365.


What Exchange Online Mailboxes Are

Exchange Online mailboxes are cloud-based accounts that deliver email, calendar, contacts, and task features across devices. Malone emphasizes that a mailbox is more than an inbox; it is a managed identity that interacts with services like calendar scheduling and resource booking. As a result, understanding mailbox types and behavior helps teams plan collaboration and compliance more effectively. Furthermore, the video underscores that mailboxes are central to daily operations in Microsoft 365 environments.


Malone also highlights that mailboxes run within a broader Microsoft 365 ecosystem where Exchange Online connects with Azure AD, Teams, and client apps. Consequently, mailbox behavior reflects decisions made across identities, policies, and client settings. This means administrators must view mailboxes as part of a system rather than as isolated objects. In short, the mailbox sits at the intersection of identity, policy, and user experience.


Types of Mailboxes and How They Work

The video breaks mailboxes into three primary categories: user mailbox, shared mailbox, and resource mailbox. Malone notes that user mailbox accounts serve individuals and include standard send/receive and calendar functions, while shared mailbox accounts let teams collaborate without extra credentials. Meanwhile, resource mailbox accounts manage rooms and equipment, helping automate bookings and reduce conflicts. Each type serves distinct needs, so choosing the correct one matters for governance and licensing.


In addition, Malone discusses storage and licensing tradeoffs, explaining that shared mailboxes may offer limited storage unless assigned a license. Therefore, admins balance cost and convenience when deciding whether to license shared accounts for larger archives. He also explains how resource mailboxes often link to disabled user accounts to simplify management, which can complicate identity cleanup during migrations. Consequently, mailbox type selection affects long-term administration workloads.


Management Tools and Best Practices

Malone reviews management paths such as the Microsoft 365 admin center, the Exchange Admin Center, and PowerShell, noting each tool’s strengths. He prefers the Exchange Admin Center for mailbox-specific controls, while recommending PowerShell for bulk operations and automation. Thus, admins should use the admin center for straightforward tasks but rely on PowerShell when they need repeatable, scripted changes. In practice, combining both interfaces reduces errors and boosts efficiency.


Additionally, the video highlights cloud-managed mailbox options that reduce dependency on on-premises Exchange servers. Malone points out that cloud-managed mailboxes simplify hybrid cleanup and support full cloud administration, although they may require updated identity and directory practices. Therefore, teams moving away from legacy servers must plan identity synchronization and conditional access carefully. Ultimately, using cloud-managed mailboxes often speeds operations but demands stronger identity controls.


Recent Updates, Security, and Tradeoffs

Malone summarizes recent changes such as extended basic authentication support, evolving DKIM management, and new features like auto-archiving. He explains that Microsoft has delayed some deprecations but strongly encourages a shift to modern authentication to improve security. As a result, administrators face a tradeoff between temporary compatibility and long-term security, so they should plan phased migrations rather than abrupt cutovers. This balancing act requires testing and clear communication with users.


He also covers user-facing improvements like allowing selection of proxy addresses in OWA, which increases flexibility for send-as scenarios. However, Malone warns that flexible sending can complicate compliance filtering and auditing unless address policies are consistent. Hence, while these features enhance user experience, they add administrative overhead to maintain traceability. In short, improved functionality often comes with greater policy and monitoring needs.


Challenges, Recommendations, and Practical Steps

The video highlights practical challenges including mailbox cleanup, migration complexity, and ensuring Teams and Skype for Business integrations for resource mailbox accounts. Malone recommends documenting mailbox types and usage patterns before any migration, because poor discovery leads to unexpected access issues and orphaned accounts. Therefore, careful inventory and staged migrations help reduce risk. He also stresses automating routine tasks with PowerShell to lower manual effort and errors.


Finally, Malone advises administrators to adopt a balanced approach: prioritize security by moving to modern authentication, but maintain compatibility for critical legacy clients during transition. He also suggests enabling auto-archiving where appropriate to control mailbox growth while preserving user access to older messages. As a result, teams can achieve stable operations while improving security and maintainability. Overall, the video provides a practical roadmap for running mailboxes in a modern Microsoft 365 environment.


Exchange Online - Exchange Online Mailboxes: What to Know

Keywords

Exchange Online mailboxes, Exchange Online shared mailbox, Exchange Online mailbox types, Exchange Online mailbox migration, manage Exchange Online mailboxes, Office 365 mailboxes explained, Exchange Online mailbox permissions, Exchange Online mailbox licensing