As of 2:32 pacific time, Microsoft Office 365, has reported issues and outages for a large number of users.
This is a known issue and is unfortunately is something that we are waiting for Microsoft to take action on.
Here is the latest status update from Microsoft:
Current Status: Engineers are investigating an issue in which some users are experiencing problems accessing or using Exchange Online services or features. This event is actively being investigated. More information will be provided shortly.
User Experience: Affected users are unable to connect to the Exchange Online service when using multiple protocols including Outlook, Outlook Web App (OWA), Exchange ActiveSync (EAS), and Exchange Web Services (EWS).
Customer Impact: A higher than average number of customers are reporting this issue. Analysis indicates that customers will likely have some users experiencing this issue.
Please contact us if you have any questions and we will continue to provide updates as they become available.