[outages] Office365 (Microsoft-hosted email/lync/etc) down

[Nate Carlson]

Office365 (Microsoft's hosted email, sharepoint, Lync, etc service) seems 
to be broken for new connections.. IE - users who had Outlook open or an 
established Lync connection before it bombed are still working fine, but 
people trying to connect are getting failures.

I am not sure, but it may be a DNS issue? IE - the server that my mailbox 
resides on (BY2PRD0712.mailbox.outlook.com) does not resolve.

Looks to be widespread:
http://community.office365.com/en-us/forums/160/t/83411.aspx