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Fresh install Windows 7 Professional, Office Professional Plus and Office 365 Professional.
Lync installation completed and running OK.
Upon running "Set up and configure your Office desktop apps" only get options for "Microsoft Outlook (manual steps required)" [in other words it does nothing] and "Microsoft Lync".
Have installed latest sign-on wlsetup-idcrl but makes no difference.
Configured Outlook manually and this connects to the email OK, but won't be in sync with future password changes so not really satisfactory.
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what do you mean "won't be in sync with future password changes"?
it's totally wrong; when your Office 365 password will expires, you will be notified and able to change it, then it will be kept on your client
to have a "full password synch" - in fact not really a synchro, you have to implement ADFS which will allow you to use your AD password (as well as your own password policy) in place of Office 365
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Single sign-on: Roadmap
Benoit. Presumably you are familiar with the single sign on used with BPOS. It configures the Outlook and other settings from one place. When you change the password at the requested time it changes the passwords in the associated programs such as Outlook. In this case the Office 365 equivalent is not configuring Outlook at all and requires manual configuration of the outlook client - including the password. Therefore, when the password is changed within Office 365 it is not changed in the Outlook client. AD has nothing to do this this implementation.
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