smart relay with exchange 365


I am using Exchange 365. We have users in the GAL that are not part of the domain and Exchange just sends the email out.

Now, we are at the point were some of those users need to become part of Exchange 365. Is there a way to setup Smart-hosting so that Exchange doesnt see the user having a mailbox on the system it will forward it to a new server. Even through the user still has an address book entry.

For example:
-Exchange handles mail for ( and
-All users for are handled by exchange 365
- User is handled by exchange 365 and mail gets delivered to his mailbox
-User is NOT handled by exchange 365 and all mail will be pushed to
*** Note Jane is still in the GAL but does not have a license or mailbox on Exchange 365.

Thanks in advance
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Guy LidbetterCommented:
Hi There,

From what you are saying, the users are contacts... not mailboxes.
These need to be manually created, you cannot sync up contacts.

Here is a good blog on how to migrate contacts from on prem to O365 using PowerShell scripts.

Office 365 – How to migrate contacts from Exchange


Vasil Michev (MVP)Commented:
You can configure the domain as internal relay and use the so-called "simple domain sharing" method as detailed here:

That way, if Exchange Online finds a matching recipient in O365 it will deliver the message internally, otherwise it will send it to where the MX record points at. Needless to say, the MX record should not point to O365, but to your other system.

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doctor069Author Commented:
That did the trick. Thanks
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