When Provisioning users and/or groups the fallowing error is found in the logs:
The local Active Directory schema has not yet been extended with Exchange classes, attributes, and other related items.
RESOLUTION:
Prepare Active Directory and domains
https://technet.microsoft.com/en-us/library/bb125224(v=exchg.150).aspx
For additional information reference Step 3 called “(if provisioning from a local AD):Install and configure the local Active Directory” of the chapter called “Migration to Microsoft’s Office 365” of the “MNE Scenarios Guide”.
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