Let us assume that Your computer is running SharePoint 2010 or 2013.

- If you have not installed and configured the SMTP service, before you configure outgoing email you must complete the steps in:
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Install and configure the SMTP service
Install and configure the SMTP service for Windows Server 2008
To install the SMTP service
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Verify that the user account must be a member of the Administrators group on the front-end
web server.
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Click Start--Administrative Tools, and then click Server Manager.
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In Server Manager, click Features--click Add Features
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On the Select Features page, select SMTP Server.
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Click Add Required Roll Services, and then click Next.
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Click Install.
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On the Installation Results page, ensure that the installation is complete,
and then click Close.
By default the IIS SMTP service, is not started and the startup type is: manual
In Run--Services.msc
- We will need to change the default setting to: Automatic.
Double click on the SMTP Service: Simple Mail Transfer Protocol (SMTP) and, change the Startup type to: Automatic.
To install IIS 6.0 Management tools
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Verify that the user account must be a member of the Administrators group on the front-end
web server.
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Click Start--Administrative Tools, and then click Server Manager.
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In Server Manager, click Roles.
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In the Application Server section, click Add Role Services.
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On the Select Role Services page, select Management Tools and IIS 6 Management compatibility, and then click Install.
To configure the SMTP service
- Verify that the user account must be a member of the Administrators group on the front-end web server.
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Click Start--Administrative Tools, and then click Internet Information Services (IIS) 6.0 Manager.
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In IIS Manager, expand the server name.
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Right-click the SMTP virtual server that you want to configure, and then click Start.
- And then click Properties.
Access tab
Access tab - AuthenticationSelect the Access tab -> Authentication
In the Authentication windows select the option: Anonymous access -
Verify that the user account must be a member of the Administrators group on the front-end
web server.

Delivery Tab
The Delivery tab use for: configure the IIS SMTP “interface” that communicate with the Exchange online server.
Delivery Tab - Outbound security
Select the Delivery tab -> Outbound Security option.
In the Outbound Security window select the option: Basic Authentication
We will need to provide the office 365 user credentials, that have
Exchange online Mailbox. In our example, we will use the credentials of a user named: ***@onmicrosoft.com
In the Outbound Security window select the option: TLS encryption ( For creating a secure communication channel to Exchange online ).
The TLS port number that we use for communicating with the Exchange online is: 587

In the Smart host text box we need to provide the Exchange online server name .
The section of: Fully qualified domain name is not a mandatory requirement. You can add the FQDN of the IIS SMTP server
In the Outbound Security window select the option: TLS encryption ( For creating a secure communication channel to Exchange online ).
Delivery Tab - TCP port
Select the Delivery tab -> Outbound connection option.
The TLS port number that we use for communicating with the Exchange online is: 587

Delivery Tab – Advanced
Select the Delivery tab -> Advanced option
In the Smart host text box we need to provide the Exchange online server name .
The section of: Fully qualified domain name is not a mandatory requirement. You can add the FQDN of the IIS SMTP server
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