Microsoft Loop – Require Existing Microsoft 365 Group for New Loop workspaces

In a bid to streamline and improve the management of Loop workspaces in Microsoft 365, new workspaces will now require a connection and management by an existing Microsoft 365 Group. This change, which comes into effect from late January to late February 2025, will not require any preparation from administrators and is expected to enhance governance processes. Admins can ensure that new Loop workspaces are connected to and managed by existing Microsoft 365 Groups, similar to SharePoint Team sites management. However, it is important to note the impact of this change on end-users who will have to skilfully select an existing M365 group during creation, which may present challenges for certain scenarios such as the automatic aggregation of Teams meeting content into a Loop workspace or the creation of short-term project workspaces. Therefore, Microsoft recommends that organizations with governance tools for SharePoint Communication sites extend their processes to include Loop workspaces.
Overall, this change in Microsoft Loop will have no impact on admins and requires no preparation, but end-users will need to select an existing Microsoft 365 Group for managing new Loop workspaces, which may present some tradeoffs for certain scenarios. The update will roll out from late January to late February 2025, ensuring a more streamlined approach to the management of Loop workspaces in Microsoft 365.
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