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Customer experience | Sales, Customer Insights,...
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Connect to Azure Communication Services to Dynamics 365 Sales

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Posted on by 108
Hello colleagues,

I would like to use a dedicated SMTP to send emails to customers, since in exchange Online Basic auth for Client Submission (SMTP AUTH) will be decommissioned we are thinking of moving to Azure.
How can I do it?

Now we use a user with Microsoft 365 Basic License to send emails from the .com domain configured in Microsoft 365 Admin.
With azure the license will no longer be necessary, right? We will only pay for consumption.

But the user who sends emails must also have the Dynamics 365 Sales license then?

Thank you
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  • Verified answer
    Muhammad Shahzad Shafique Profile Picture
    2,373 Most Valuable Professional on at
    Use Azure Communication Services (ACS) or Azure Logic Apps with Office 365/Graph API for SMTP-less, scalable email delivery.

    1: Azure Communication Services (ACS) – Email
    • Sends emails via Azure-managed infrastructure.
    • No Microsoft 365 license required for sending.
    • Pay-as-you-go pricing (you’re correct — license not needed, only consumption billing).

     Prerequisites:
    • Azure subscription
    • Verified custom domain in ACS
    • SPF/DKIM/DMARC setup in DNS

    Licensing Notes:
    • No Microsoft 365 license needed for the sending identity when using ACS.
    • However, the Dynamics 365 user (who triggers or owns the email in CRM):
      • Must have a Dynamics 365 Sales license if the email is initiated from the CRM system (e.g., workflows, Power Automate using the user's context).

    2: Use Graph API to Send Email
    • Requires an app registration with Mail.Send delegated or application permissions.
    • The app sends email on behalf of a shared mailbox or service principal.
    • Still requires Exchange Online mailbox or shared mailbox (license or license-exempt depending on usage).

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