For Office365, you may have firmware too old to do SHA-2 Encryption, so before proceeding, bring the firmware up to the latest
Make sure the time is correct, if it is wrong by 3 minutes or more it will stick sending and just say "processing"
smtp.office365.com port 587, using STARTTLS (Do not choose "STARTTLS if available"). Make sure the login name and from address are identical.Also make sure both logins are set to System before you type them in.
Then go to CWIS > Properties > Services > Email > Setup and edit the From Field entry
And verify it is exactly the same as the other locations above. This field gets populated when you first setup SMTP, but does not get changed when you change the SMTP section later.