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DLP provides an automated system to detect when users send out sensitive information. An appropriate action can then be taken, using a Policy tip to warn the user, journal the message, notify a person/group or block the message. Microsoft DLP includes a template engine to create templates for different policies, with a templates for common policies such as HIPAA and PCI. Exchange 2013 DLP suffers from limitations, mainly it worked only on messages sent through the Exchange server, Policy Tip warnings are only supported in OWA 2013 and Outlook 2013, and the system requires specialist skills to maintain.

Microsoft has extended DLP into SharePoint Online and OneDrive for Business. Office 365 DLP will also be able to recognize and act on tags created in the Windows Server file classification infrastructure (FCI). These FCI tags will be recognized by Exchange Online, SharePoint Online, and OneDrive for Business. And for Office: Word, PowerPoint, and Excel, support for Policy Tips will be added in the future.

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