Diplomat MFT can send files via email as well as send email notifications to IT staff and even business users via SMTP. A number of Coviant Software customers use O365 daily as their means of sending email notifications. Configuration of your corporate O365 environment to allow Diplomat to do so is outside the scope of Coviant’s support.
However, Microsoft does make a few options available. Documentation is available online, linked below. One of the three options they present should work well for any organization using O365 as their corporate email provider.