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Outlook Security/Password problems after adding Office365 Profile

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We are planning to move from an "on-premises" Exchange Server (SBS 2008) to Office365. I set up trial Office365 and on one user's computer and I added a profile which linked to the Office365 Exchange Server. At this point a txt record had been added and the domain verified by Microsoft but the MX record had not been changed. The next time the user logged in and started Outlook using the same profile that they had previously which was set up to connect to the on-premises mail server it wouldn't connect and kept prompting for a password. I changed it to the local domain user and password and it then connected to the on-premises Exchange Server. I am confused by this as I would have thought that adding a new mail profile would not affect existing profiles. I was planning to set all the users to have a mail profile forthe on-premises...


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