SMTP relay settings for Office 365

• A user who has an Exchange Online mailbox
• The SMTP set to port 587
• Transport Layer Security (TLS) encryption enabled
• The mailbox server name

Step 1: Obtain the SMTP server setting

1. Sign in to Outlook Web App.
2. Take one of the following actions:
   • In Office 365, click Options, and then click See All Options.
   • In Office 365 Preview, click Settings (
     
     ), and then click Options.
3. Take one of the following actions:
   • In Office 365, in the left navigation pane, click Account, click My Account, and then, in the Account Informationarea, click Settings for POP, IMAP, and SMTP access.
   • In Office 365 Preview, in the left navigation pane, click Account, and then click Settings for POP and IMAP access.
4. Note the SMTP server setting information that's displayed on this page.

Step 2: Set up Internet Information Services (IIS)

1. Create a user who has an Exchange Online mailbox. To do this, use one of the following methods:
   • Create the user in Active Directory Domain Services, run directory synchronization, and then activate the user by using an Exchange Online license. 
     
     Note The user must not have an on-premises mailbox.
   • Create the user by using the Office 365 portal or by using the Microsoft Online Services Module for Windows PowerShell, and then assign the user an Exchange Online license.
2. Set up the IIS SMTP relay server. To do this, follow these steps:
   1. Install IIS on an internal server. During the installation, select the option to install the SMTP components.
   2. In Internet Information Services (IIS) Manager, expand Default SMTP Virtual Server, and then click Properties.
   3. Click the Access tab, and then click Relay.
   4. In the Select which computers may relay through this virtual server area, click Only the list below, and then enter the IP addresses of the on-premises LOB devices and application servers that will relay through the SMTP server. 
      
      Warning Make sure that you enter only the IP addresses of the devices and servers that you trust. This setting lets mail that's coming from these sources be relayed to any destination. In effect, this makes the on-premises server that is running IIS an open relay.
   5. On the Access tab, click Authentication, make sure that the Anonymous access check box is selected, and then click OK.
   6. Click the Delivery tab, and then, under Smart host, enter the fully qualified domain name (FQDN) of the SMTP server from step 2a.
   7. On the Delivery tab, click Outbound Connections.
   8. in the TCP Port box, type 587, and then click OK.
   9. On the Delivery tab, click Outbound Security, and then take the following actions:
      1. Click Basic Authentication.
      2. In the User name box, type the user name of the Office 365 user.
      3. In the Password box, type the password of the Office 365 user.
      4. Click to select the TLS encryption check box, and then click OK.

How to support multiple email addresses

Method 1: Use a mail-enabled security group

1. Sign in to the Office 365 portal (https://portal.microsoftonline.com) as an administrator. 
2. Create a mail-enabled security group that contains all the mailboxes that have the email addresses that you want to relay to Exchange Online. To do this, follow these steps:
   • In Office 365, follow the steps at the following Microsoft website:
     Create a Security-Enabled Distribution Group
   • In Office 365 Preview, follow these steps:
     1. Click Admin, and then click Exchange to open the Exchange Admin Center.
     2. In the left navigation pane, click Recipients, and then click Groups.
     3. Click New (
        
        ), and then click Security group.
     4. In the Members area, add the mailboxes that will be used to send mail.
3. Assign the mail-enabled security group SendAs permissions for the user mailbox that you created earlier in the "Step 1: Set up Internet Information Services (IIS)" section. To do this, follow these steps:
   • In Office 365, follow the steps at the following Microsoft website:
     Give Users Send As Permissions
   • In Office 365 Preview, follow these steps:
     1. In the left navigation pane of Exchange Admin Center, click Recipients, and then click Mailboxes.
     2. Double-click the user who you created earlier in the "Step 1: Set up Internet Information Services (IIS)" section, click Mailbox Delegation, and then, in the SendAs area, add the mail-enabled security group.
4. Make sure that the SMTP relay works as expected.

Method 2: Add proxy addresses

• In Office 365, follow the steps at the following Microsoft website:
  Add or Remove Proxy Addresses to a User’s Account
• In Office 365 Preview, see the "Email Addresses" section of the following Microsoft website:
  Manage Mail Users
• In Exchange Online PowerShell, follow the steps at the following Microsoft website:
  Add Proxy Addresses to Many Users’ Accounts with Windows PowerShell.

Use Postfix to set up an SMTP in Office 365

Hi Barnes,
I understand you cannot set your copy machine to connect to the Microsoft Online Services SMTP server.
To narrow down this issue, you can test  your  SMTP relay setting in outlook client. To do this, please see,
http://help.outlook.com/en-us/140/gg312147.aspx
For more information about SMTP relay requirements, please refer to this
http://support.microsoft.com/kb/260091
http://community.office365.com/en-us/forums/152/p/17739/82677.aspx#82677
Thanks
Luke Yan

Connect to the Microsoft Online Services SMTP Server

Should you need to test 

we do have a sandbox account set up ready to go

Microsoft Online Services supports sending Simple Mail Transfer Protocol (SMTP) e-mail messages. SMTP applications can connect to Microsoft Online Services SMTP servers and authenticate using Microsoft Online Services user credentials to send e-mail messages. The connection requires Transport Layer Security (TLS).

SMTP Relay means transferring the e-mail messages from one server to another via SMTP. SMTP Relay capability allows organizations to use Microsoft Exchange Online as an SMTP service for mail originating outside of the Exchange Online environment, for example SMTP-enabled applications such as fax servers.

Connect to the Microsoft Online Services SMTP Server

• To connect to the Microsoft Online Services SMTP server, open your SMTP application and provide the information below.

  • FQDN: The fully qualified domain name (FQDN) of the Microsoft Online Services SMTP server is slightly different depending on which Microsoft Online Services data center your company is connected to. The server FQDNs are:
    
    • North American Data Center: Smtp.mail.microsoftonline.com
    • European Data Center: Smtp.mail.emea.microsoftonline.com
    • Asia Pacific Data Center:  Smtp.mail.apac.microsoftonline.com
  • User name and password: The user name and password of a Microsoft Online Services user account with an Exchange Online license.
    On most SMTP applications, this is under My outgoing mail server (SMTP) requires authentication. This should also be configured Yes.
  • SMTP port 587: On most SMTP applications, this is under Server Port Numbers for Outgoing Server (SMTP). This should be configured to use port 587.
  • TLS enabled: Make sure that Transport Layer Security (TLS) is enabled in your SMTP application.
    On most SMTP applications, this is under My outgoing mail server (SMTP) requires an encrypted connection (SSL). This should be configured Yes.
  Note 

  The FROM address must use a SMTP domain of type Authoritative. This can be confirmed in Microsoft Online Services Administration Center, under the Users - Domains tab.
  Important 

  You must update the password on the user account in the SMTP application regularly, before it expires. If the password expires before you update it, SMTP services will stop. Microsoft Online Services passwords expire every 90 days.