Open Server Manager.
Click manage -> Add roles and features.
Select “Role based or feature based installation”.
Click Next to continue.
In the feature popup “Check SMTP Server” listed in the feature.
Now, proceed to install.
Click Start -> Open IIS Manage to configure SMTP Virtual Server.
Right on the SMTP Virtual Server -> Click Properties.
Click authentication “Check anonymous”.
Click the connection ”Check All except the list below”.
Do the same for relay.
Click Message and set “Limited message size is 10240”.
Open “Outbound security”.
Click Basic authentication.
Provide the Email and password from the providers (Ex: Outlook,Gmail,Yahoo).
Open “Outbound connections”.
Provide TCP Port 587.
Note: Port number will be different for the different Email providers.
Check that FQDN is valid.
Provide SMTP host of your Email provider.
Restart the “Simple mail transfer protocol service”.
Now, open SharePoint central administration.
Click System settings-> Configure outgoing E-mail settings.
Provide the Outbound SMTP Server.
From address and reply-to-address.
SMTP Port and TLS Encryption.
Now, you create/Manage alerts in a list and libraries.