Modern authentication in Office 365 enables authentication features like multi-factor authentication (MFA) using smart cards, certificate-based authentication (CBA), and third-party SAML identity providers. Modern authentication is based on the Active Directory Authentication Library (ADAL) and OAuth 2.0.
By default, modern authentication isn't enabled in Exchange Online, but you can enable it.In order for Office desktop clients, such as Outlook, Skype for Business, to support MFA via federated authentication, your Office 365 tenant needs to be configured to support modern authentication.
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