Microsoft 365 Group Types Selector

Understanding the different types of groups in Microsoft 365 helps you select the right collaboration tools for your needs. Each type has unique features designed for specific use cases. This guide will help you choose the optimal solution.

Email Functionality Limitations

While Microsoft Teams and Microsoft 365 Groups include email capabilities, they have important limitations:

Limited folder access: Unlike dedicated mailboxes, Teams and 365 Groups have limited email folder management capabilities
Sending challenges: It can be difficult to send emails "as" the group address without additional configuration
Email management: For email-heavy processes, it's advisable to set up a dedicated Mailbox alongside a Microsoft Team or 365 Group

This combination provides the collaboration benefits of Teams/365 Groups while maintaining robust email handling.

Select the Right Group Type for Your Needs

Based on your requirements, choose the most appropriate group type:

Security Group

Used for access control and permission management, not for collaboration.

Security Management
User Management

License assignments
Access control to resources
Security targeting

Best for: IT administrators managing access and licenses

Distribution List

A single email address that forwards messages to multiple recipients.

Email Address
User Management

Shared email address
One-way communication
No reply coordination needed

Best for: Newsletters and announcements

Shared Mailbox

A shared mailbox that multiple users can access to send and receive emails.

Email Address
Mailbox
User Management

Shared email address
Collaborative email management
Email archiving

Best for: Support, sales, or service email addresses

Microsoft 365 Group

A collection of people who work together with shared resources.

Email Address
Mailbox
SharePoint
Document Library
Shared Calendar
User Management

Shared mailbox
SharePoint document library
Shared calendar

Best for: Project teams requiring file sharing

Microsoft Team

The most comprehensive collaboration tool in Microsoft 365.

Email Address
Mailbox
SharePoint
Chat & Messaging
Online Meetings
Document Library
Integrated Apps
User Management

Chat and messaging
Online meetings
Files and SharePoint integration
Integrated apps and workflows

Best for: Full collaboration needs for internal and external users

Your Recommended Solution

All Microsoft 365 Group Types

Security Group

A Security Group is ideal for:

Managing access permissions to resources
Assigning licenses to groups of users
Configuring conditional access policies

Security Groups don't provide collaboration features like email or file sharing.

Security Management
User Management

Distribution List

A Distribution List is ideal for:

Sending newsletters or announcements to multiple recipients
Creating mailing lists for departments or projects
One-way communication scenarios

Distribution Lists don't facilitate collaboration or file sharing.

Email Address
User Management

Shared Mailbox

A Shared Mailbox is ideal for:

Managing support or sales emails that require responses
Creating department email addresses (e.g., info@company.com)
Shared email management by multiple team members

Usage Note

For teams that need both email collaboration and file sharing, consider combining a Shared Mailbox with a Microsoft Team. This provides robust email management alongside the collaboration features of Teams.

Email Address
Mailbox
User Management

Microsoft 365 Group

A Microsoft 365 Group is ideal for:

Teams that need both email collaboration and file sharing
Projects requiring shared calendars and planning tools
Departments that collaborate on documents

Email Functionality Limitations

Microsoft 365 Groups have limited email capabilities:

Limited folder structure and management
Challenges sending emails "as" the group address
Restricted email organization capabilities

For email-heavy processes, consider adding a dedicated Shared Mailbox alongside your Microsoft 365 Group.

Microsoft 365 Groups provide a good balance of email and file sharing capabilities.

Email Address
Mailbox
SharePoint
Document Library
Shared Calendar
User Management

Microsoft Team

A Microsoft Team is the most comprehensive collaboration option and ideal for:

Full-scale project collaboration
Teams that need chat, meetings, files, and apps in one place
Cross-department collaboration
Working with external partners and clients

Email Functionality Limitations

Microsoft Teams have limited email capabilities:

Limited folder structure and management
Challenges sending emails "as" the team address
Restricted email organization capabilities

For email-heavy processes, supplement your Microsoft Team with a dedicated Shared Mailbox for optimal email management while maintaining the collaboration benefits of Teams.

Recommended Teams Structure

Microsoft Teams are used extensively for collaboration on projects and with clients. Within a Team, we recommend using these channel types:

Standard – accessible to all team members
Private – accessible to selected team members only
Shared – accessible to external users or other teams

Recommended Naming Structure

A consistent naming scheme helps organize and identify content effectively:

<Company Name> - <department name> #Private to Company
Client A - # May have content and guests from Client A
- General # Background material on the Client
- Invoicing # Private Channel with limited access for invoices or proposals for Client A
- Exchange # Shared Channel for data exchange with Client A
Client B - # May have content and guests from Client B
Client C - # May have content and guests from Client C

Email Address
Mailbox
SharePoint
Chat & Messaging
Online Meetings
Document Library
Integrated Apps
User Management