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The autodiscover cname record for Exchange online (office 365) does not work. When I ping the autodiscover.mydomain.com location I get no response. Outlook cannot find either. Office 365 says it is configured correctly.

Any thoughts?

The CAME shows up in a dig:

; <<>> DiG 9.8.3-P1 <<>> -t cname autodiscover.REDACTED.com
;; global options: +cmd
;; Got answer:
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 54477
;; flags: qr rd ra; QUERY: 1, ANSWER: 1, AUTHORITY: 0, ADDITIONAL: 0

;; QUESTION SECTION:
;autodiscover.taliama.com.      IN      CNAME

;; ANSWER SECTION:
autodiscover.REDACTED.com. 3599 IN      CNAME   autodiscover.outlook.com.

;; Query time: 68 msec
;; SERVER: 8.8.8.8#53(8.8.8.8)
;; WHEN: Sun Nov 30 17:00:03 2014
;; MSG SIZE  rcvd: 77

The ping result is:
Round trip time to 157.56.234.137: 9 ms
Average time over 10 pings: 9 ms

Maybe it just needed some more time to propagate.