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Can I change the authentication mode for o365 from basic to ntlm?

I'm having an issue where external users get prompted for MAPI login in Lync when they dont have Outlook open.

I found an article http://www.proexchange.be/blogs/lync2010/archive/2012/02/10/microsoft-lync-2010-mapi-com-server-authentication-prompt-explained.aspx that explains the problem, and I found how to do it on exchange server, but I cant seem to find anything about o365.

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It turns out this is expected behavior.

Office 365's Exchange service uses basic authentication passed through SSL, because of the nature of o365 there is no way to change the authentication type.

On initial sign-in that prompt is expected if outlook is not open. The credentials can be stored to avoid future prompts, however every 3 months (password reset), the users will be prompted for thier passwords again.

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The jump start series of videos on technet edge are highly recommended. Especially technet.microsoft.com/en-gb/video/… in this case which explains the federated authentication that occurs in passive and active client scenarios. –  maweeras Nov 30 '12 at 14:05

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