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Password expiration between WSE2012 and O365

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My understanding is that in Office 365, you can set user passwords to expire at a maximum interval of 730 days. When you integrate WSE2012 with Office 365, the passwords are synchronized. My question is what happens if you set your passwords to never expire on WSE2012? Does Office 365 still stick to the 730 days threshold or will it respect the policy that was set on the server? Anyone have any insight into how these passwords are synced between these two systems?

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