We have clients who want a Hybrid model (where some exchange mailboxes are hosted in Microsoft 365) rather than full blown integration.
Would the proposed solution (using DNAT) with the sources constrained to the Microsoft approved IP/URL list and having the Palo Alto inspect the traffic be regarded secure enough?
If you are planning to do SSL decryption you may see some issues like for sharepoint so be prepared
For the best security for Cloud Apps CASB (Cloud Access Security Broker) is needed if you are in a health or bank company, so maybe also see Prisma SaaS or other CASB provider.
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