Allow Active Directory / Azure Clients to relay mail through Exchange Online

Is there a way to allow email addresses which are external to your domain but defined as a contact in the Active Directory to directly send email via SMTP though our Exchange Online (Office 365) server.

We have a network of 30 outside (independent sales reps)  who are defined as contacts in our Active Directory.  They access or ERP system using this ID.   However when they access a function in the ERP the application sends out an SMTP request to trigger an email using their non domain email address (eg   Since it is coming from a non-domain computer and a non-domain email address it never gets sent.    I do not want to open it up as an unsecured relay but I would like to accept relay requests from the external emails that are defined in the AD.

Can this be done?

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Jian An LimSolutions ArchitectCommented:
can you explain further.
How do you access ERP system using a contact object?

A user object is an object that is a security principal in the directory. A user can log on to the network with these credentials and access permissions can be granted to users.
A contact object is an account that does not have any security permissions. You cannot log on to the network as a contact. Contacts are typically used to represent external users for the purpose of e-mail.

how is your ERP systems trigger the send function? did it send from backend or it rely on OUtlook to send the emails?
AmitIT ArchitectCommented:
Are you getting 5.7.1 error?
paulfreeAuthor Commented:
No we are not.   We have a web page which requires a login but the users are not part of our domain (they are not in the Active directory).  They fill out a form and that form is supposed to go to someone in our domain.  We use a program called wsendmail which sends an SMTP packet.  When we hosted our own exchange server it worked fine.  When we moved to Exchange 365 the relay will not accept these mail requests unless I use a default administrator account to send the mail.  Since the From address is not part of our domain it seems that exchange 365 is not accepting these requests,
AmitIT ArchitectCommented:
You better call Microsoft and tell them this issue. As servers are now in MS control.
Jian An LimSolutions ArchitectCommented:

where do the wsendmail  pointing to?
what you need to do is to create a receive connector on office 365 so it accept any email from this IP address.

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