Microsoft to Discontinue VPN Feature in Microsoft 365 by February 28

• The VPN feature of the Microsoft 365 Defender app is set to disappear by the end of this month.
• Restricted functionality hindered broader usage, leading to limited adoption among Microsoft users.
• Microsoft will also increase subscription prices for Microsoft 365 and introduce advanced Office AI features.

Microsoft has announced plans to retire the VPN feature in its Microsoft 365 subscription later this month, citing usage patterns and shifting customer needs as the primary reasons for its decision. 

The feature, designed to enhance user privacy, was integrated into the Microsoft Defender app to encrypt internet traffic and conceal IP addresses. Its official removal date is set for February 28, 2024.

“We routinely evaluate the usage and effectiveness of our features. As such, we are removing the privacy protection feature and will invest in new areas that will better align to customer needs,” Microsoft said in a recent support note, first reported by Windows Central.

The decision to sunset the VPN feature likely stems from its limited adoption among Microsoft 365 users. Critics have pointed out that the VPN's restricted functionality hindered broader usage. 

Key limitations included a 50GB monthly data cap that made the VPN impractical for frequent use. Besides, the VPN automatically connected to local regions, rendering it ineffective for bypassing geographic restrictions—a common use case for many VPN users. 

These constraints prevented the feature from competing with more robust standalone VPN services, leading to a lack of engagement.

Although the VPN feature will no longer be available, Microsoft 365 subscribers in the U.S. will still have access to identity theft protection and credit monitoring services as part of their subscription. This change pushes users seeking VPN functionality to explore third-party solutions for their privacy and security needs.

This announcement follows closely behind Microsoft’s decision to increase subscription prices for Microsoft 365 for the first time in over a decade. 

The price hike adds $3 per month and introduces advanced Office AI features. However, subscribers can downgrade to the classic Personal or Family plans to retain the previous pricing without the added AI functionalities.

The move highlights Microsoft's shifting focus toward incorporating AI-driven tools into its offerings while phasing out services that no longer align with customer demands.