Enable Modern Authentication on Office 365

I recently implemented Multifactor authentication for our O365/Azure users. Our users connect to Azure Portal and Office 365 using a variety of client apps. These applications handle MFA differently. I also needed to update Office 365 to allow modern authentication. This was required because Outlook 2016 for Windows was unable to add my Office 365 email account without modern authentication.

1. Enable MFA using Azure Active Directory: https://docs.microsoft.com/en-us/azure/active-directory/authentication/howto-mfa-mfasettings     It also describes how to generate App Passwords. App Passwords are required for Office 365 clients that cannot handle MFA. App Password actually bypass MFA so use them only if needed.
2. I tried to add my office 365 account in the mail client for my IPhone. To my surprise it allowed my to enter my password and MFA code to configure my mail account. It did not require using App passwords.
3. I tried to add my Office 365 account to Outlook 2016 on windows 10. It failed to add my account and did not show a helpful message.
4. To resolve above issue I had to enable modern authentication on my office 365 tenants. The steps were:
   1. Connect with Exchange Online PowerShell using the steps below: https://docs.microsoft.com/en-us/powershell/exchange/exchange-online/connect-to-exchange-online-powershell/connect-to-exchange-online-powershell?view=exchange-ps     When you run the script  you will need to use your App Password to authenticate with Office 365
   2. Once you are successfully connected you can view your current settings for OAuth2ClientProfileEnabled using the command:


Set-OrganizationConfig -OAuth2ClientProfileEnabled $true

Get-OrganizationConfig | Format-Table -Auto Name,OAuth*

Name OAuth2ClientProfileEnabled
---- --------------------------
xxxxxxxxxx.onmicrosoft.com True
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5. After enabling OAuth2ClientProfileEnabled I was able to successfully add my Office 365 email account to Outlook 2016 on Windows.

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