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Salesforce email relay to Office 365

I am hoping to get this setup without having to setup an internal IIS SMTP server.  Does anyone know the procedure for getting this setup correctly?

Currently when sending email from salesforce it is sent on behalf of the user.  All users have Office 365 mailbox.  I have configured a connector in Office 365 which allows it to work when sending email to company users but when sending to external it fails.
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In your office 365 admin center you have to create CONTACTS for your external users with their email addresses.  Once done you will be able to send to those contacts.
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Is there any other way besides creating contacts?  We are talking potentially thousands of contacts.  Thanks
Did you test with one external email set up as a contact in O365 to verify if that worked? You can do a bulk import of the contacts into o365 with powershell and a .csv file.
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The link provided was the answer.