Powershell Fails to connect to O365

[alphonsodavies]

trying to setup Public Folder backup and have followed Veeam guides on how to setup the permissions for the account used for authentication.

its failing to connect to powershell even though, Exchange Online remote powershell is enabled. i can connect to my tenant outside of veeam just fine.

Exact Error:

'Connect to Powershell: Connecting to remote server outlook.office365.com failed with the following error message: Access is denied. for more information, see about_Remote_Troubleshooting help topic"

[Mildur]

Does your tenant already has disabled basic Auth?
I see this message when Microsoft has disabled Basic Auth for a tenant.

https://community.veeam.com/blogs-and-p ... tocol-1805

[alphonsodavies]

it was disabled but i enabled it back for Remote powershell

[Mildur]

How long did you wait before trying again?

[alphonsodavies]

knew it might take a few hours so enabled it on Friday afternoon.

[Mildur]

Ok, that is long enough. Is it possible that Azure Security Defaults are enabled in your Tenant?

If not, a support case with veeam is needed to analyze this issue. I‘m sure they can tell you from the debug logs what is happening in the background.

[alphonsodavies]

Thanks Fabian, i've contacted and waiting for Veeam to get back to me.

[KOTOXJle6]

Did you resolve the issue? We faced same problem. When we try to run backup for O365, it fails at powershell check step and if we try to connect manually with this:
$Cred= Get-Credential
$Session= New-PSSession -ConfigurationName Microsoft.Exchange -ConnectionUri https://outlook.office365.com/PowerShell-LiveID -Credential $Cred -Authentication Basic -AllowRedirection

We got error:
"Connect to Powershell: Connecting to remote server outlook.office365.com failed with the following error message: Access is denied. for more information, see about_Remote_Troubleshooting help topic"

MS site said:
This issue occurs for one of the following reasons:

1) You enter an incorrect user name or password.
2) You try to sign in to the service by using an account that doesn't have access to Exchange Online.
3)You have security defaults enabled in your tenant

1) I can login with this account to any Azure/365 service
2) Account is in Global admin and Organization management groups
3) Security default disabled. And i've also checked Basic Auth via EXCHO Admin Center: Microsoft has not blocked Basic authentication for any protocol or feature for your tenant.

[Regnor]

Have you configured the authentication policy as described in this article?
https://www.veeam.com/kb2969#Exchange

[KOTOXJle6]

Yes. We use basic auth only:
- Account is a global admin
- Apps that don't use modern authentication" has been set to "Allow Access" already

I've noticed that if i try to connect manually via "Connect-ExchangeOnline", it works. If i try to connect via "New-PSSession -ConfigurationName Microsoft.Exchange -ConnectionUri https://outlook.office365.com/powershell-liveid/", i got access denied.
Veeam backup module updated to last version.

[Mike Resseler]

The OP didn't leave a support ticket ID so I can't check. I advice to also create a support call and put the support case ID here in the thread

[KOTOXJle6]

I was able to work around via connection with cloud global admin account (@yourdomain.onmicrosoft.com). Don't know why domain account (with global admin in azure/365) get access denied.

[Mike Resseler]

That's a weird one. That should not be an issue. So there might be some issues in your Azure AD to AD itself. But to be honest I cannot think of why at this moment