Microsoft warns Dynamics 365 Finance and Operations on-prem users of Skype authentication update

Microsoft announced that Skype will be updating the way it authenticates users—including Dynamics 365 for Finance and Operations on-premises users--on October 9, and some customer may not be able to log into D365 unless they take steps to stop the Skype integration. The login issues will apply to anyone with D365 FO environment PU12 or PU15 and update numbers KB4091763 or KB4091764. Fortunately, Skype is disabled in D365 environments by default and customers that have not activated it will not face problems.

Customers with affected environments will need to manually disable Skype. This can be accomplished by clicking on full details in D365 FO by navigating from system administration to setup, client performance options and client internet connectivity. Setting the Skype presence enabled toggle to no disables the integration. Alternatively, customers can update to a platform version that has Skype disabled by default or supports disabling Skype integration. Clicking full details under the environments tab redirects to platform binary options, where users can click save package and choose the KB for their platform version.

The Skype update only affects authentication via Active Directory and not local copies of the program. Because on-prem customers are charged with configuration choices, they will have to decide when it is safe to turn on Skype presence enabled. In the event of further issues, Microsoft directed customers to create a support case by logging into lcs.dynamics.com, choosing the project and going through the support case process in the project menu.