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Connect CRM 2016 Online without using SDK/OrganizationServiceClient

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Hi, 

We have a custom .NET application, where in we are providing Service Reference to the 2011 On- Premise Organization. viz. We are not using the CRM SDKs and directly adding the CRM Endpoint in the Service Reference and the code is working fine with all CRUD Operations.

Now we are in the verge to Migrate the 2011 On- Premise Organization to 2016 Online Organization and are updating the Enpoint to 2016 Online.

We are stuck with a severe Issue "Secure Channel cannot be Opened because security Negotiation with the remote Enpoint has failed".

Can anyone help us on this as we cannot migrate the whole code to use CRM SDK dlls?

The same endpoint works fine with the On- Premise CRM instance and we are able to build the OrganizationServiceClient but not in Online.

Please find the Screenshot


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