The purpose of this service is to digitally authenticate yourself with a Windows Live ID. Your work and your emails are NOT stored on a server at Microsoft. Microsoft Information Rights Management Services When you click on Restrict Permissions by People you will be prompted to sign up for a authentication servicer. You need a server to effectively manage Users, User Groups and Permissions. Some companies have their own sever that checks users credentials. Microsoft offers a free service online.   Information Rights Management Service IRM is a licensing program, basically. You add a Use License to each file you want to restrict and indicate which people can use this file.   When you open a restricted file, you need to be online so that you can connect to a server, show your credentials, and download a use license. The use license say what permissions you are given: Read, Write, Edit, Save or Print.   6. Try it: Setup the IRM Service Click on Restrict Permissions by People. You will be prompted to sign up for the service. Click NEXT and keep going... File ->Info->Permissions->Protect Workbook->Restrict Permissions by People Exam 77-888: Microsoft Excel Expert 2010 1. Sharing and Maintaining Workbooks 1.1. Apply workbook settings, properties, and data options: restricting Permissions