Assume that you have the Microsoft Office 365 Integration feature enabled. After you install Update Rollup 1 for Windows Server 2012 Essentials (KB2781267) and then restart the server, Office 365 Integration Service reports do not run. Additionally, you may receive the following health alert when you open the dashboard:
One or more services are not running.
The following important Windows services are not running. Windows Server Office 365 Integration Service (O365ProviderSvc) Note: Services can be stopped when software updates are applied.
In Update Rollup 1 for Windows Server 2012 Essentials, a new Password Synchronization Service component is introduced so that Windows Server 2012 Essentials works better with the Office 365 integration model and the hosted email framework. The new Password Synchronization Service component is deployed as a service on the server, and, by default, its initial status is set to Disabled. When you then enable the Office 365 model or your hosted email plug-in, the Password Synchronization Service is automatically turned on. Therefore, if you enabled the Office 365 model before you installed Update Rollup1, you have to manually turn on the Password Synchronization Service.