Hi David,
Jira Service Desk is designed to work with a host of different possible mail servers of varying types. You should be able to use Office 365 if you like for this. There is a basic setup guide for this in Receiving requests by email.
But if that doesn't help, then we would need to know more about what kind of problem/error you see in your environment. You might have to get into the $JIRAHOME/log/ folder in order to look at the logs files for atlassian-jira.log, atlassian-service-desk.log, or atlassian-jira-incoming-mail.log files to better understand what kind of error might be generated in the logs. With this information we should then at least have a better understand of why this might not be working for your environment.
Regards,
Andy
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