Cisco Firesight Threat Defense and Office 365

OK waring guys:

If you have Office 365 (cloud) configured for your users, it will NOT work properly with Cisco FTD firewalls if any kind of IPS/IDS is being utilized, or any custom rules. We are running FTDs and FMCs with 6.3.0.3 code, and in order to get Office 365 to work at all, we had to TRUST the traffic: aka, no inspection or higher level processing. We also had to open a lot of ports.

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I don't know if this issue exists in Palo Alto or other platforms, but it is a big problem (among many) for us with Cisco firewalls.