Configure SMTP in Windows 2012 for Office 365

Install SMTP service from windows 2012 form add server role.

select  IIS and click next

Select SMTP form next window

Go to Internet Information Service (IIS) 6.0 Manager

and select  SMTP Virtual Server and go to properties.

In the General tab go to Advanced and select the ip address and port.

Go to delivery and select Outbound Security.

Select Basic Authentication

in the user name and password give the office 365 account username and password.

 In the Outbound Connections change the TCP port to 587

Then select Advanced give the smart host as.

SMTP.office365.com