The attempt to connect to ... using "Negotiate" authentication failed

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From EMC, error message -

The attempt to connect to https://ps.outlook.com/PowerShell/PowerShell.htm using "Negotiate" authentication failed:  Connecting to remote server failed with the following error message : The WinRM client cannot process the request. The authentication mechanism requested by the
client is not supported by the server or unencrypted  traffic is disabled in the service configuration. Verify the unencrypted traffic setting in the service configuration or specify one of the authentication mechanisms supported by the server.  To use Kerberos, specify the computer name as the remote destination. Also verify that the client computer and the destination computer are joined to a domain. To use Basic, specify the computer name as the remote destination, specify Basic authentication and provide user name and password. Possible authentication mechanisms reported by server: For more information, see the about_Remote_Troubleshooting Help topic.

All of the answers on search engines came up wrong, so I'm posting this. The answer is that you're using a bad account or one without the right permissions. Clear the default credentials checkbox and put in a global admin onmicrosoft.com address to cross-check.

2/13/12 - More detail: Test logging into portal.microsoftonline.com with the creds. Get it to work there and you'll be good in EMC.