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You could install smtp server and configure IIS to send to your server on a schedule.
David Favor
Be sure your clear about...
Sending Email != Email Deliverability
Sending mass email from your own MTA IPs requires a very long period of warm up + a massive amount of intelligence to any level of deliverability.
You can setup an MTA + send your first bulk email in a few minutes.
For high deliverability... that's another matter... sometimes requiring weeks to months of IP warm up, depending on many factors.
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1) We have a system that send circular out, which sometime can reach five thousand email to outsider.
I routinely send many 1,000,000s of email per batch, many times each week... for many projects...
Exchange will certainly work for this + I find Postfix + EXIM far easier to work with... My personal preference...
2) Is there a way in exchange that can queue email to be send out batch by batch?
Yes. Exchange, Postfix, EXIM, any MTA already has built in queuing.
All MTAs require built in queuing, as this is a requirement for implementing SMTP backup resend logic.
3) Or how does exchange manage huge email in the queue?
Exchange is proprietary code, so you will never have a 100% correct answer, because you will never see the source.
For Postfix, EXIM, Sendmail, etc... if you really require an answer, you will review the source code for each MTA.
Tip: You can simply read the SMTP RFC to see how queuing works at a macro level, then review MTA source code to determine micro level implementation of the SMTP RFC in way MTA, as each MTA implements different logic.
David Favor
Tip: If your goal is high deliverability, your best next step is to visit with an Email Deliverability Consultant.
This person will looks at type of email you're sending, along with past List Hygiene Policy, which will determine your next best step.
Sending high deliverability email is far more complex than most people imagine.
Note: Simple approach will be to start by using MailGun relaying all your Exchange email through MailGun to leverage their already warmed up IP pools, till you can work through all your Email Deliverability strategy with your Email Deliverability Consultant.
I started with Experts Exchange in 2004 and it's been a mainstay of my professional computing life since. It helped me launch a career as a programmer / Oracle data analyst
You could install smtp server and configure IIS to send to your server on a schedule.