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Microsoft imposes new sending limits for external M365 traffic

by James Pepe | 03/03/2025 | News

Microsoft imposes new sending limits for external M365 traffic

As you may have already read, Microsoft is set to introduce new outbound sending limits for external email traffic in Exchange Online, and it’s a game-changer for organizations that rely on email communications. This update, which will gradually roll out starting in March 2025, will impact how businesses send emails to recipients outside their email tenant. If you’re wondering how these changes might affect your organization, here’s what you need to know.

What are the new outbound email limits?

Microsoft is introducing a new tenant-level outbound email limit, known as the Tenant External Recipient Rate Limit (TERRL), for Microsoft 365 / Exchange Online. This means that each tenant will have a daily limit on the number of external recipients they can email. But first, what does “external” mean? Simply put, any recipient outside of the sender’s email tenant falls under the external category.

The limits will vary depending on the number of email licenses a tenant has:

  • Trial Tenants: These organizations will be limited to sending emails to 5,000 external recipients per day.
  • Non-Trial Tenants: The limits for non-trial tenants will depend on the number of licenses they’ve purchased. For example, larger organizations with more licenses will have higher daily sending limits.
  • The Maximum Limit: The highest outbound sending limit for non-trial tenants is 1.5 million emails per day, but this is only available to tenants with 100,000 or more licenses.

What happens if you exceed the limit?

Exceeding the TERRL will result in a block on further outgoing emails. If this occurs, users will receive non-delivery reports, meaning that emails sent beyond the limit won’t make it to their recipients. This change is expected to impact large organizations, especially those with high-volume email needs.

How does this affect your organization?

These new limits may sound like a tough break for businesses that rely on large-scale external email communications. However, it’s important to remember that Microsoft’s new limitations are just one part of the email landscape. There are alternatives that provide more flexibility and fewer restrictions.

Retarus Email: A better solution

This is where Retarus Email shines. Unlike Microsoft’s Exchange Online service, Retarus Email offers a more flexible and scalable email solution. Here’s how Retarus stands out:

  • No Licensing Minimums or Restrictions: Retarus Email doesn’t impose any minimum licensing requirements, so you don’t have to worry about scaling your email needs based on license purchases.
  • No Daily Sending Limits: Retarus Email doesn’t enforce any daily sending limitations. Whether you’re sending ten or 10million emails a day, Retarus ensures that you can send as much as you need.
  • Unlimited Recipients: Retarus Transactional Email has no recipient limits, meaning you can send emails to as many recipients as necessary without worrying about restrictions.
  • Flexible Email Security: Retarus also offers robust email security allowing for comprehensive protection without the worry of hitting volume limitations.

If you want to learn more about how Retarus Email can help your business bypass these restrictions and offer a seamless email experience, feel free to reach out. We’re here to help!

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