We get this question all the time. People are trying to setup mailboxes from their Office 365 Account, but it’s just not working. There are a number of reasons for the problems, but most of the time it boils down to the three listed below.
Here is the most common screen shot error. This is usually an issue with DNS
Here is the second most common screen shot error. This one is clearly password.
Check to make sure that your user (with the issues) has an active Exchange License assigned to their account. This is done through the Microsoft Online Portal
As you can see this user has a license properly assigned.
Check to make sure that the user is filling out the Outlook prompt correctly. The first two are pretty straight forward, but the password can throw some people off.
Your Name: Keep it neat and enter the display name on the account
E-mail Address: Your Office 365 email address
Password: Your Office 365 password. Most of the time when an account is setup, the users will forget (or don’t know) to login to the portal and change their password. Until that password is changed from the default one, Outlook will not setup correctly.
Since we know that Outlook relies on an Autodiscover DNS record lets verify that we can ping. If setup correctly when you ping autodiscover (from the internal network) or autodiscover.domainname.com (from the internet), you should get name resolution to autodiscover.outlook.com. We have verified that the DNS entries are correct in our public DNS, yet when we ping autodiscover or autodiscover.domainname.com, it tells me Ping request could not find a host.
The cause of the issue is a result of running split brain DNS. The resolution to this issue is to add the autodiscover CNAME record to your internal DNS server. Since your workstation is connected to the internal DNS server and it has a zone that matches your internet zone, you will never reach the public DNS server. For this reason, the CNAME record for Autodiscover needs to be added to the internal DNS server.
Once the CNAME record is added to the internal DNS server, the workstation can now resolve the name correctly.
Once Name resolution is cleared up, Outlook will now setup your account correctly.
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Office 365 MVP