Forum Discussion
Outlook and SSO
- Sep 13, 2018Do you have Modern Authentication enabled for Exchange Online?
https://support.office.com/en-gb/article/enable-or-disable-modern-authentication-in-exchange-online-58018196-f918-49cd-8238-56f57f38d662
For the record, modern authentication was set to 'false' for this tenant, thus the issue I encountered. As soon as I enabled, it worked as expected.
You should also enable it for Skype for Business, if you haven't already. It is even recommended to have it enabled both for Exchange and Skype. https://social.technet.microsoft.com/wiki/contents/articles/34339.skype-for-business-online-enable-your-tenant-for-modern-authentication.aspx
As it says in the article, Modern Auth is enabled by default for new tenants since 2017 August 1. So i guess your tenant is older (like mine was). As we are using local AD, i also had to add SIP address for a user into ProxyAddresses attribute for Skype to find correct username automatically, but in your case this is probably not needed.