The Exchange Server connection could not be saved as the Sync Engine was unable to contact the Exchange Web Service

Less than one minute read time.

Version 2018 R1

Problem Details:

After setting up the exchange server, ensuring that the exchange web service is available using the impersonated user account when attempting to create a new connection, we get the following error:
  The Exchange Server connection could not be saved as the Sync Engine was unable to contact the Exchange Web Service. Please refer to the Exchange Server Integration chapter of the System Administration Guide for information on possible causes of the unavailability of the Exchange Web Service.
In the logs we get the following error:
ERROR com.sage.scrm.syncengine.exchange.ews.service.SageExchangeService.getUserPrimarySMTPAddress javax.xml.ws.WebServiceException: Could not send Message.
javax.xml.ws.WebServiceException: Could not send Message.

Error Message:
The Exchange Server connection could not be saved as the Sync Engine was unable to contact the Exchange Web Service. Please refer to the Exchange Server Integration chapter of the System Administration Guide for inf

Solution or workaround

We have managed to resolve the issue using Fiddler. Seems that the problem had something to do with the fact that CRM is using SMTP authentication instead of the Principal Name. The customers’ environment didn’t allow for SMTP authentication and once they made that change we were able to connect successfully.