*Update*

Microsoft restored service at around 7:30pm this evening.
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Previous Description (2014-06-23 17:17:54):

*Update*

Microsoft estimates that service has been restored to about half of its customers. They continue to try and restore service to those remaining affected by these issues.

Affected customers are seeing intermittent connection errors and disconnects when signing in to the Lync Online service. Upon a successful login, customers may experience reduced functionality. --------------------------------------------------------------

Previous Description (2014-06-23 14:56:45):

Microsoft is investigating issues affecting access to O365 applications, specifically Lync. Affected users may see a spinning circle while attempting to log on, or may be disconnected from the service and be unable to log back on.

Microsoft is attempting to restore service and has been rerouting traffic to use alternate paths in order to alleviate the issue. Service should begin to return gradually as traffic flow increases on the new routes.