In partnership with

After three decades, Microsoft is finally moving away from NTLM, a foundational Windows authentication system. If you’ve never heard of it, don’t worry… but its impact on security is huge.

88% resolved. 22% stayed loyal. What went wrong?

That's the AI paradox hiding in your CX stack. Tickets close. Customers leave. And most teams don't see it coming because they're measuring the wrong things.

Efficiency metrics look great on paper. Handle time down. Containment rate up. But customer loyalty? That's a different story — and it's one your current dashboards probably aren't telling you.

Gladly's 2026 Customer Expectations Report surveyed thousands of real consumers to find out exactly where AI-powered service breaks trust, and what separates the platforms that drive retention from the ones that quietly erode it.

If you're architecting the CX stack, this is the data you need to build it right. Not just fast. Not just cheap. Built to last.

What’s the Deal?

NTLM (New Technology LAN Manager) has been around since the early 90s, helping systems verify user identities across networks.

But now, Microsoft is disabling NTLM by default in new Windows versions, signaling a major shift toward modern, more secure authentication systems like Kerberos.

This isn’t just an update, it’s the end of a legacy security era.

Why You Should Care

Even if you’re not in IT, this change affects:

  • Enterprise security standards

  • Workplace systems & login processes

  • Cloud and hybrid environments

NTLM was built for a different time before cloud computing, remote work, and advanced cyber threats.

Modern systems demand stronger protection, and NTLM just can’t keep up anymore.

Common Pitfalls

Many organizations still rely on NTLM without realizing its risks.

Here’s where it falls short:

  • Uses outdated cryptography

  • Vulnerable to password cracking tools

  • Exposed to relay attacks

  • Doesn’t support Zero Trust or MFA

Ignoring this shift could leave systems exposed to serious security threats.

How to Understand the Shift

1. What NTLM Actually Does

  • Uses a challenge-response system

  • Sends hashed passwords instead of plain text

  • Designed for local networks and smaller environments

Problem: It wasn’t built for today’s cloud-first world.

2. Why NTLM Is Being Retired

  • Weak encryption methods

  • Easily cracked using tools like Hashcat

  • Vulnerable to attackers intercepting authentication

  • Not compatible with modern security frameworks

3. Enter Kerberos (The Replacement)

Kerberos is a ticket-based authentication system that:

  • Doesn’t repeatedly send passwords

  • Uses a trusted system called a Key Distribution Center (KDC)

  • Verifies both users and services

Result: More secure and efficient authentication.

4. Why Kerberos Is Better

  • Mutual authentication (both sides verify each other)

  • Time-based tickets reduce misuse

  • Single sign-on experience (login once, access multiple services)

  • Built for modern security environments

Pro Tip

Even though NTLM is being phased out, it may still exist as a fallback method. If you manage systems, now is the time to audit and reduce NTLM dependencies before it becomes a bigger risk.

  • Audit where NTLM is still being used

  • Enable Kerberos authentication wherever possible

  • Disable NTLM in controlled environments

  • Implement multi-factor authentication (MFA)

  • Align systems with Zero Trust security models

Wrapping up!

Losing files after a Windows update can be stressful, but in most cases, your data isn’t permanently lost it’s just hidden, moved, or stored elsewhere. By checking the Windows.old folder, user accounts, backups, and search tools, you can often recover your files quickly without needing advanced tools. Going forward, the best protection is preparation. Enable backups like File History or cloud storage, and create restore points before major updates. Because when it comes to your data, a small precaution today can prevent a big headache tomorrow

Keep Reading