Hello, This is a newbies question;) We have an SaaS application needs to allow users to send emails where the user can specifiy x an y like xxx@yyy.com Do we need exchange for this? Or is it overkill? Thanks!

Nope, you don't need Exchange. You just need an SMTP server that can accept the email from the application, presuming that is how the application sends email. A standard Windows server can have SMTP installed (it is part of IIS), or you could use your ISPs SMTP host, or a Linux box etc. Simon.Simon Butler, Exchange MVP Blog | Exchange Resources