Microsoft had sold a number of simpler email products before, but the first release of Exchange (Exchange Server 4.0 in March 1996) was an entirely new X.400-based client–server groupware system with a single database store, which also supported X.500 directory services. The directory used by Exchange Server eventually became Microsoft's Active Directory service, an LDAP-compliant directory service which was integrated into Windows 2000 as the foundation of Windows Server domains.

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“The arguments have devolved over three or four years of bitter debate, the principles are real and they are important to preserve, but a lot of the drama has nothing to do with principles anymore. A lot of this debate is now more about hurt feelings. It’s about bruised egos. It’s about things that were said that can’t be unsaid, insults that were exchanged, and personalities and ego.”

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Exchange Online was first provided as a hosted service in dedicated customer environments in 2005 to select pilot customers.[21] Microsoft launched a multi-tenant version of Exchange Online as part of the Business Productivity Online Standard Suite in November 2008.[22] In June 2011, as part of the commercial release of Microsoft Office 365, Exchange Online was updated with the capabilities of Exchange Server 2010.

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