Emails can be sent through Office365 email servers using either:

• Authenticated Client SMTP, or
• SMTP Relay (using an Outlook connector)

In the new 409.6 release of SPM & PHM Incisive have made some changes to allow the SMTP Relay correctly communicate with Exchange Online (Office365).

If you are using 409.4 or earlier you will need to use the Authenticated Client SMTP option. 

SMTP Relay

In SPM/PHM (release 409.6 or newer) configure the options in Setup > Provider > Email   (for each Provider)

SMTP Server Settings

SMTP Server Name:    <your-domain>.mail.protection.outlook.com
SMTP Encryption:       TLS
SMTP Server Port:      25  (needs to be an open Outgoing port)

Account Authentication

SMTP Authentication NOT required

Authenticated SMTP

Authenticated SMTP requires authentication to be enabled at the Tenant and the Mailbox level.  It is disabled by default.
https://docs.microsoft.com/en-us/exchange/clients-and-mobile-in-exchange-online/authenticated-client-smtp-submission

In SPM/PHM configure the options in Setup > Provider > Email   (for each Provider)

SMTP Server Settings

SMTP Server Name:    smtp.office365.com
SMTP Encryption:       TLS
SMTP Server Port:      587  (needs to be an open Outgoing port)

Account Authentication

SMTP Authentication required
Authentication Method:     AUTO or LOGIN
Account Username:          The email address of a user account
Account Password:           The password for the user account

Troubleshooting

• Use the Check Connection and Send Test Email.
  Look at the log as it will explain the problem.  Scroll to the bottom of the log for the most recent entry.
• Check port 25 or 587 are open  (Use Telnet if you are not sure)
• Check .NET Framework 4.8 or newer is installed.
• Get your Office365 administrator to go to the Azure Active Directory and check the Sign-In logs to view the connection attempts.