No they do not. Microsoft had some push back on this and have enabled a new endpoint on the site that allows legacy devices like the 3500i. This is info I got from the MS O365 website:
To take advantage of this new endpoint, admins will have to:
- Set the AllowLegacyTLSClients parameter on the Set-TransportConfig cmdlet to True.
- Legacy clients and devices will need to be configured to submit using the new endpoint smtp-legacy.office365.com
Hope this helps, I will be trying it tomorrow on a customer's 4500i
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