Microsoft’s New Cloud PC Security Defaults: Are They Enough for Your Business?

Microsoft just announced some important changes to the way Windows 365 Cloud PCs are secured. Starting in the second half of 2025, new Cloud PCs will come with tighter default security settings—designed to make it harder for attackers to move files around or sneak in malware.

For small and medium-sized businesses, these changes are good news. But they also raise an important question: are these new defaults enough to protect your company, or do you still need to do more?

What’s Actually Changing?

If you’re setting up a new Cloud PC or reprovisioning an existing one, Microsoft is now turning off some features by default. Specifically, clipboard, drive, USB, and printer redirection will all be disabled. That means users won’t be able to copy files between their Cloud PC and their local device unless you turn that setting back on.

This helps prevent sensitive data from being accidentally moved, or stolen, and makes it harder for malware to find its way in through things like USB drives.

It’s worth noting that USB mice, keyboards, and webcams are still allowed. Microsoft is only blocking the kind of USB access that could be risky. So your hardware should still work as expected.

Microsoft has also added some under the hood protections. New Cloud PCs running Windows 11 now come with virtualization-based security, Credential Guard, and something called HVCI (hypervisor-protected code integrity). In simple terms, these tools help keep malware from messing with your system’s core processes.

If you’re using Intune or Group Policy, you’ll still be able to override these defaults if your team needs specific redirection features. Microsoft will flag these changes in the Intune Admin Center so you can adjust things as needed.

How This Affects You

For smaller companies, these new defaults are actually a solid step forward. A lot of SMBs don’t have the time or resources to fine-tune every setting in Microsoft’s security stack. With these changes, Microsoft is handling some of that heavy lifting right out of the box.

But here’s the catch: these updates only apply to new or reprovisioned Cloud PCs. If your existing setup has weak spots, nothing will automatically change. And while these defaults help reduce some risks, they don’t cover everything.

You’ll still need protection against phishing, insider threats, account takeovers, and a long list of other modern attacks.

What Else Should You Be Doing?

If you want to build on Microsoft’s changes and give your business stronger protection, here are a few key things to focus on:

• Start with multi-factor authentication. It’s one of the easiest ways to prevent account takeovers.
• Make sure you’re running some form of endpoint detection so you know when something suspicious is happening on a Cloud PC or local device.
• Limit who has admin rights. Not everyone needs to install software or change settings.
• Set up some basic data loss prevention rules to catch when sensitive files are moving around in ways they shouldn’t.
• Keep an eye on your audit logs and access controls. These can help you spot trouble before it becomes a bigger problem.
• And don’t forget employee training. Even the best security tools won’t help if someone clicks the wrong link.

Not Sure If You're Covered?

Security settings can be tricky, especially when your team is juggling other priorities. If you’re not sure whether Microsoft’s new defaults are enough, or if you’d like help filling in the gaps, we’ve got you covered.

At TechHorizon Consulting, we offer a virtual CISO service that gives you expert cybersecurity leadership without the full-time cost. We help you make sense of changes like this, understand your risks, and build a plan that fits your business, not someone else’s.

If that sounds helpful, head over to our Contact Us page. We’re always happy to talk and help you figure out the best next steps.