Create groups in Exchange Online and SharePoint Online

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An organization can create groups not only in the Microsoft 365 admin center, but also in Exchange Online and SharePoint Online.

Creating groups in Exchange Online

An organization can use the Exchange Online admin center to create groups of users. A major benefit of using groups is that you send an email to all the users in a group at the same time. When you create a group in Exchange Online, select the appropriate group type depending on the purpose of the group:

  • Microsoft 365. This group type enables teams to collaborate by giving them a group email and a shared workspace for conversations, files, and calendars. In Outlook, they're called Groups. For more information, see Manage Microsoft 365 groups.
  • Distribution. People often refer to this group type as a distribution list. It creates an email address for a group of people. For more information, see Manage distribution groups.
  • Mail-enabled security. This group type sends messages to all members of the group and gives access to resources like OneDrive, SharePoint, and administrator roles. It also provides a secure and efficient way to manage email communication and assign permissions within an organization. It combines the features of both a security group and an email distribution group. For more information, see Manage mail-enabled security groups.
  • Dynamic distribution. A type of distribution group. Microsoft 365 automatically updates its list of recipients every 24 hours based on the filters and conditions the organization defines. It sends email to all members of the list. For more information, see Manage dynamic distribution groups.

After you create distribution groups and mail-enabled security groups in the Exchange admin center, their names and user lists appear on the Active teams and groups page in the Microsoft 365 admin center. You can delete these groups in both locations. However, you can only edit them in the Exchange admin center. Dynamic distribution groups don't appear on the Microsoft 365 Security groups page.

Creating groups in SharePoint Online

Microsoft 365 automatically creates several built-in SharePoint groups whenever you create a site collection in SharePoint Online. SharePoint administrators can also manually create SharePoint Online groups at any time. SharePoint Online groups are collections of users who have the same permission level. This design enables an organization to grant multiple users access to a SharePoint Online site by granting permission to the group. SharePoint Online groups greatly enhance and simplify the permissions-management process for administrators. Although SharePoint Online groups can contain individual users, it's easier to manage them with security groups from Microsoft 365.

The built-in groups that Microsoft 365 automatically creates when you create a site collection in SharePoint Online are referred to as default SharePoint Online groups. The default SharePoint Online groups that Microsoft 365 automatically creates depend on the site template that you use to create the site. For example, the Team Site template contains the following default SharePoint Online groups: Team Site Visitors, Team Site Members, and Team Site Owners.

The default groups use the default permission levels in SharePoint—sometimes called SharePoint roles—to grant users rights and access. For more information, see Default SharePoint groups.

Frequently asked questions about security groups

Let's take a look at some frequently asked questions about security groups to help clarify this subject:

  • Question: How is a security group in Microsoft 365 different from security groups I create in SharePoint?

    • Answer: A security group in Microsoft 365, also known as a Microsoft Entra security group, operates at the Microsoft Entra ID level. It can manage access and permissions across various Microsoft 365 services, applications, and resources. It provides a broad scope of security and access control across the entire Microsoft 365 environment. On the other hand, a security group in SharePoint is specific to SharePoint sites and operates at the site collection or site level. Organizations use SharePoint security groups to manage access and permissions within SharePoint, controlling who can view, edit, and interact with SharePoint sites, libraries, lists, and individual items.
  • Question: Do I have to use security groups for my organization to be secure?

    • Answer: No. Security groups are just another way to manage security for your organization. You can always grant user permissions and access to sites individually. But with security groups, you can easily manage larger groups of users.
  • Question: Can I send email to a security group?

    • Answer: Yes, as long as it's a mail-enabled security group. However, you can't send email to a regular security group.