Important Software Update: Sage CRM

Microsoft is phasing out the Application Impersonation role for Exchange Online

Sage recently shared that Microsoft is phasing out the Application Impersonation role for Exchange Online. This process began in May 2024 and will conclude with its full removal by February 2025.

This software update will only affect our customers that use Sage CRM Exchange Integration with Exchange Online (Office365).

How does this impact you?

Application Impersonation allows applications to access user mailboxes on their behalf. With its removal, new methods will be required for applications to connect to MS Exchange Online.

For organisations using Exchange Online – Once the Application Impersonation role is withdrawn, customers using Exchange Online may experience interruptions in connectivity.

For organisations using Exchange On-Premise servers – There is no indication from Microsoft of plans to remove Application Impersonation. It remains assignable and manageable via PowerShell in these environments. Organisations using Exchange On-Premise can continue to utilise Application Impersonation without disruption. The current EWS-based integration will remain unaffected.

What steps are Sage taking?

To address this change, the Sage CRM team are currently developing version specific patches to ensure the Sage CRM and Exchange Online integration. This patch will ensure compatibility after the removal of Application Impersonation.

For customers implementing Sage CRM with a new instance of Microsoft Exchange Online, Sage recommends holding off on attempting the integration until the upcoming patches are released. The removal of the Application Impersonation role in Exchange Online has already started affecting new integrations, and these patches will resolve the issue.

From Sage CRM 2025 R1, Sage will transition the integration from Exchange Web Services (EWS) to Microsoft Graph. This will provide a future-proof solution for Exchange Online customers.

Your next steps

If you currently use Sage CRM Exchange Integration with Exchange Online (Office365), and think you will be affected by this software update please contact your account manager or email us on [email protected].

If you would like to discuss Sage CRM in more detail then please use the enquiry form or call us on 01332 959 008