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overview

Architecture

Microsoft 365 with a DuoKey-held key

Microsoft 365 with a DuoKey-held keyMicrosoft 365 keeps the encrypted data and asks DuoKey Cockpit to wrap and unwrap; the key stays in your vault or HSM, and revoking it locks the data.KEEPS THE DATADUOKEY KEEPS THE KEYWRAP / UNWRAPVAULT APIREVOKEMICROSOFTMicrosoft 365service encryption · Customer KeyKEY CONTROLDuoKey Cockpityour key (BYOK)VAULTVault / HSMkey never exportedKey revokedinstant lockoutLEGENDMicrosoft 365DuoKey CockpitKey custodyKey operationRevocation

Microsoft 365 keeps the data; DuoKey keeps the key. Revoke the key and the data goes dark, everywhere.

Applies to:
Office 365 E5Exchange OnlineSharePoint OnlineOneDrive for BusinessMicrosoft Teams

Office 365 Customer Key Architecture

Elevating Data Security in Office 365 with Advanced Key Management​

Microsoft Office 365 Customer Key allows you to provide, control, and manage your root encryption keys that are used to encrypt your data at rest in Office 365. With DuoKey for Office 365 Customer Key, you gain advanced key management capabilities using Multi-Party Computation (MPC) technology, ensuring no single point of failure and enhanced security posture.

Why DuoKey for Office 365 Customer Key?​

Enhanced Control and Compliance

Manage your root encryption keys to meet compliance demands that require key management arrangements with the cloud service provider.

Robust Encryption

Works alongside Office 365 native encryption mechanisms such as BitLocker and service encryption to provide an additional layer of security.

Flexibility in Key Management

Manage encryption keys both on-premises and in the cloud, providing comprehensive coverage across all data at rest.

Key Features​

Comprehensive Encryption Coverage​

Supported Workloads

DuoKey extends encryption capabilities across various Office 365 applications:

  • Exchange Online (mailbox data)
  • SharePoint Online (sites and documents)
  • OneDrive for Business (personal files)
  • Microsoft Teams (chat, files, and recordings)

Seamless Integration with Office 365​

Integrates with Office 365 without altering the native user experience, maintaining performance and functionality while enhancing security.

Advanced Key Management Capabilities​

Multi-Party Computation (MPC): Unlike traditional key management services, DuoKey utilizes MPC to enhance security by distributing parts of the encryption key across multiple locations, ensuring no single point of failure.

No Single Access

No single party has complete access to encryption keys.

Insider Threat Protection

Enhanced protection against insider threats.

Secure Operations

Cryptographic operations performed without exposing keys.

Compliance Ready

Meets stringent compliance requirements.

Competitive Advantage​

Beyond Traditional HSM Solutions​

DuoKey provides more robust data protection capabilities than traditional HSMs by allowing organizations to retain complete control over their encryption keys.

Multi-Party Computation

Distributed key operations with no single point of compromise.

Enhanced Audit

Enhanced audit and monitoring capabilities.

Flexible Deployment

Cloud or on-premises deployment options.

Regulatory Compliance

GDPR, HIPAA, SOC 2, and industry-specific regulations.

Integration with Microsoft Encryption Technologies​

TechnologyLevelDescription
BitLockerDisk-levelDisk-level encryption for physical security
SSE (Service Encryption)Service-levelService-level encryption within data centers
Customer KeyApplication-levelApplication-level encryption with customer-controlled keys
Defense in Depth

DuoKey adds an extra layer of key management control, ensuring that even if one layer is compromised, your data remains protected.

Technical Process for BYOK Import​

The Bring Your Own Key (BYOK) process is a comprehensive method for customers to import and control their encryption keys within Microsoft Office 365, ensuring enhanced data security and compliance.

BYOK Process for Office 365 Customer Key​

1

Offline Key Generation

The process begins with the generation of the target Customer Key on an offline machine. This key can be RSA (Rivest-Shamir-Adleman), EC (Elliptic Curve), or AES (Advanced Encryption Standard). The key is encrypted using the MRZ15 algorithm for additional security during transport.

2

Online Key Exchange Key (KEK) Generation

Two RSA KEKs are created online via DuoKey automation and Azure Graph API. These KEKs are stored securely in two Azure Key Vaults, which are Azure premium HSM-backed key management services.

3

Retrieve KEK Public Key

The public keys of the KEKs generated in the previous step are retrieved, which will be used in the next steps to secure the encryption process.

4

Temporary AES Key Creation

A temporary AES 256-bit key is generated online, which will be used to encrypt the Customer Key in transit to ensure its confidentiality and integrity.

5

Encrypt Temporary AES Key

The temporary AES key is then securely wrapped using the RSA KEKs from Step 3, employing the RSA_PKCS_OAEP algorithm for robust encryption.

6

Wrap Customer Key

The Customer Key is wrapped with the AES key generated in Step 4 using the CKM_AES_KEY_WRAP_PAD algorithm. This step secures the Customer Key before it is uploaded to Azure Key Vault.

7

Combine Encryption Session Key and Encrypted Message

The encrypted outputs from Step 5 and Step 6 are combined to form a secure message package that includes both the encrypted key and the encrypted data, ready for secure transmission or storage.

8

Generate BYOK File for Import

A BYOK file in JSON format is created, which includes all necessary parameters and encrypted keys from the previous steps. This file is ready to be imported into Azure Key Vault, enabling the secure use of Customer Keys within Microsoft Office 365 environments.

Security and Compliance Considerations​

Data Sovereignty and Control

Customers retain full control over their keys, ensuring compliance with local data sovereignty laws and regulations.

Enhanced Security

Customers generate and keep the root keys outside Microsoft, authorise their use in Azure Key Vault and can revoke that authorisation.

Auditing and Compliance

Supports detailed auditing capabilities, allowing organizations to monitor key usage and access for compliance.

How Office 365 Customer Key Works​

Encryption Architecture​

Office 365 uses a layered encryption approach:

1

Service Encryption Layer

Microsoft encrypts data at rest using service encryption keys (Microsoft-managed key).

2

Customer Key Layer

Your Customer Keys encrypt the service encryption keys (Your Customer Key from DuoKey).

3

BitLocker Layer

Additional disk-level encryption for physical security.

Data Encryption Process​

User Data (Plaintext)
|
[Layer 1: Service Encryption]
| (Microsoft-managed key)
Service-Encrypted Data
|
[Layer 2: Customer Key Encryption]
| (Your Customer Key from DuoKey)
Customer Key-Encrypted Data
|
[Layer 3: BitLocker Encryption]
| (Disk-level encryption)
Fully Encrypted Data at Rest

Key Hierarchy​

Customer Key (Your control via DuoKey)
|
Data Encryption Policy (DEP)
|
Intermediate Keys
|
Per-mailbox/per-file Keys
|
Encrypted User Data

Use Cases​

Scenario: Need to comply with financial regulations requiring control over data access and key management.

Solution: DuoKey enables financial organizations to manage their own keys, enhancing security and ensuring compliance with GDPR, SOX, PCI DSS, and Basel III.

Benefits:

  • Demonstrate cryptographic key control to auditors
  • Meet data residency requirements
  • Instant key revocation capabilities
  • Complete audit trail of key operations

Supported Office 365 Workloads​

Exchange Online

Mailbox data encryption, archive mailbox encryption, and encryption of data indexed by Exchange Search.

SharePoint Online and OneDrive

Document libraries, lists and list items, site content, search indexes, and OneDrive personal files.

Microsoft Teams

Chat messages and conversations, files shared in Teams channels, meeting recordings, and Teams site content.

Skype for Business

Conversation history, shared files, and meeting content.

Multi-Party Computation (MPC) Technology​

DuoKey leverages MPC technology to provide enhanced security for your Office 365 Customer Keys.

How MPC Works​

1

Key Splitting

Your Customer Key is mathematically split into multiple shares.

2

Distributed Storage

Shares are stored in separate, isolated locations.

3

Threshold Operations

A minimum number of shares (threshold) required for operations.

4

No Single Point of Access

No single party can access or reconstruct the complete key.

MPC Benefits​

No Single Point of Failure

Even if one location is compromised, your key remains secure.

Enhanced Access Control

Multiple parties must collaborate for key operations.

Cryptographic Operations

Performed without ever exposing the complete key.

Compliance Advantage

Demonstrates enhanced security controls to auditors.

Key Revocation and Data Recovery​

Instant Key Revocation​

Key Revocation Impact

Revoking keys will immediately prevent Microsoft from decrypting your data. Users will lose access to their mailboxes, files, and Teams data until keys are restored.

1

Deprovision Keys

Remove Customer Keys from Azure Key Vault.

2

Immediate Effect

Microsoft loses access to decrypt your data within hours.

3

Data Protection

Your data remains encrypted and inaccessible.

Availability Key​

Availability Key

Microsoft maintains an Availability Key as a backup mechanism. It is used only in specific scenarios (e.g., key unavailability), does not provide Microsoft with routine access to your data, and is subject to strict access controls and auditing.

Key Recovery​

1

Restore Customer Keys

Restore Customer Keys to Azure Key Vault.

2

Update DEP

Update Data Encryption Policy (DEP).

3

Service Recovery

Service automatically regains access to decrypt data.

Prerequisites​

Prerequisites

  • Office 365 Enterprise E5 license (or E5 Compliance add-on)
  • Exchange Online Plan 2
  • SharePoint Online Plan 2
  • OneDrive for Business Plan 2
  • Global Administrator role for configuration
  • Azure subscription
  • Azure Key Vault Premium (HSM-backed) in two regions
  • Appropriate Azure Active Directory permissions
  • Resource group for Key Vault deployment
  • DuoKey platform access
  • DuoKey Cockpit configured for Office 365 Customer Key
  • Valid DuoKey license
  • HTTPS connectivity between Office 365 and Azure Key Vault
  • Outbound connectivity from Office 365 services
  • Proper firewall and proxy configurations

Performance Considerations​

Impact on User Experience​

Minimal User Impact

Customer Key operations are designed to have minimal impact on end-users. Encryption and decryption happens transparently with no noticeable performance degradation. Key management occurs as background operations.

Initial Encryption Timeline​

WorkloadTimelineNotes
Mailboxes24-48 hours per DEPDepends on mailbox size
SharePoint/OneDriveSeveral days to weeksDepends on data volume
TeamsFollows SharePoint timelineData stored in SharePoint

Ongoing Operations​

  • Real-time encryption for new content
  • Automatic key rotation support
  • Continuous background encryption for unencrypted content

Monitoring and Auditing​

DuoKey Audit Logs

Key access attempts, successful/failed operations, administrative changes, and compliance reports.

Office 365 Audit Logs

DEP assignments, key usage, administrative actions, and security incidents.

Integration Points

Azure Monitor, Office 365 Security and Compliance Center, DuoKey Cockpit, and SIEM integration.

Quotas and Limits​

Office 365 Customer Key Limits​

ResourceLimit
Maximum DEPs per tenant50
DEP assignment scopeMultiple mailboxes/sites per DEP
Minimum key size2048-bit RSA keys
Key refresh operationsSubject to Azure Key Vault throttling

Azure Key Vault Limits​

ResourceLimit
Keys per vault25,000
Operations per 10 secondsVaries by key type and operation
Region-specific quotasApply per Azure region

Best Practices​

Key Management

Maintain offline backups, plan regular key rotation, implement least-privilege access, and store keys in different Azure regions.

Security

Require MFA for admin access, use separate Azure tenants, enable comprehensive logging, and develop incident response procedures.

Operational Excellence

Test DEP assignments in non-production, maintain detailed runbooks, follow structured change processes, and train IT staff.

Comparison with Other Solutions​

Customer Key vs. Default Encryption​

FeatureDefault Service EncryptionCustomer Key
Key ControlMicrosoft managesCustomer manages
Key LocationMicrosoft datacentersAzure Key Vault (customer's)
ComplianceStandard complianceEnhanced compliance (data sovereignty)
Key RevocationNot possibleInstant revocation capability
Audit ControlMicrosoft audit logsCustomer audit logs + Microsoft logs
CostIncludedAdditional licensing required

Customer Key vs. Customer Lockbox​

FeatureCustomer KeyCustomer Lockbox
PurposeEncryption key controlAccess request approval
ScopeData at rest encryptionMicrosoft support access
ImplementationTechnical setup requiredAdministrative approval workflow
Compliance ImpactEnhanced data protectionEnhanced access governance

Getting Started​

1

Getting Started

2

Operations Guide

3

Best Practices

Troubleshooting​

For detailed troubleshooting guidance, see Troubleshooting Guide.

Support​

For technical support or questions about DuoKey for Office 365 Customer Key: