This document details the exact steps ton how to configure the "Default Mail Settings" with O365’s SMTP connection. Note that you may encounter the error below if the settings are not configured correctly:
“Client was not authenticated to send anonymous email during MAIL FROM”
SOLUTION
In the MMC console, open the "Default Mail Settings" properties and under the "Mail setup" tab configure the settings as detailed below:
1) Settings for: SMTP server;
2) SMTP Server: smtp.office365.com, Port: 587;
3) An actual office365 email address that is used as the User Name for server authentication. For Eg: account@company.onmicrosoft.com;
4) The correct password that is used for user to be authentication;
5) Make sure the ARS box has access to the external network (internet);
6) The “Sender E-mail address” should be the same as the one used for server authentication (in step 3).
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