You attached screen shot error states "Timeout or IOException occurred while connecting to SAAS provider, while your comment reads a different error.
As mentioned earlier, a Timeout or IOException is potentially a cause of missing or incorrect proxy settings. Basically, CloudStreams cannot reach out, and the connection times out. While the error "First Element must contain the local name, Envelope , but found HTML " is an Axis fault typically caused by stating incorrect end-point URL (Either for proxy or the Server EndPoint)
Kindly raise a support request, along-with server log, proxy settings, etc.
#CloudStreams#webMethods#Integration-Server-and-ESB