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The Skype team has informed us that there will be an outage of the Skype Presence API in September 2018. This outage will have an impact on D365 FO OnPrem. When users try to sign in to the web client session, they may be redirected to an AAD error page. This is similar to the issue we experienced in this past February.
To prevent the potential issue from happening, please turn off the Skype Presence option in the following page:
System administration -> Setup -> Client performance options -> Client internet connectivity -> Skype presence enabled
Update from Skype team: the planned outage is delayed and now scheduled for first or second week of October 2018. Nevertheless, our recommendation is the same: disable the Skype Presence option so you won't see any disruption in your OnPrem deployments.
We have seen reports of the outage in the last few weeks. Some users asked, "If I can't login to the system, how do I disable the Skype presence option?" The answer to that is, you can connect to the database directly and run "update [AXDB].[dbo].[SYSCLIENTPERF] set SkypeEnabled = 0".
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