My Outlook And Skype For Business For Mac Aren't Linking

Hi, I have my corporate email on O365 and use Outlook 2016 for Mac. I had Lync 2011 earlier and it never used to connect to Outlook for updating my presence status. I installed Skype for Business for. If you’re logged into Skype for Business with one account, but logged into Outlook with another, Skype Meeting functionality doesn’t come up in Outlook. Even when you’re logged in with the same account, you may need to use the “Online Meeting” button to add Skype Meeting URLs/dial-in numbers to a Meeting invite.

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I'm at a college where we have a campus licensing agreement with Microsoft for licensing Windows and Office that now includes Office 365 online services, which includes Skype for Business. I'm playing with Skype, and it's a decent IM and presence app on it's own. The screen sharing features are nice. The trick here is that we don't have Exchange anywhere (we have G Suite Apps for Edu handling our e-mail services).

I've come across a few places in the Skype program that complain about this: The thing is. I am able to sign in and exchange messages with another user. Accounts are synced from Active Directory to Azure AD, and authentication happens via AD FS. We have no plans or desire to add Exchange here. However, I have a hard time recommending anyone use the software if it's going to have so many 'errors' right on the surface. It looks like it's my fault, that I've missed something, and will create lots of service calls. Can I make these errors go away?

Have I just missed something in the setup?