Why bother with Windows Server Essentials now? Because although you can rely entirely on Office 365 in the cloud, chances are you want more local control and hands-on capabilities on local servers. That’s the main reason to use Windows Server Essentials, as a supplement to Office 365. (Yes, you can also use Windows Server Essentials in an on-premises-only deployment for basic services.)
By integrating your Windows Essentials Server with Office 365, you can perform much of the administration through the Dashboard on your server. For example, you can create accounts easily; you can manage license assignments; password changes made on-premises are synced to Office 365; and you can manage mobile devices and other services from the server. Granted, you could do this from the Office 365 admin center too, but it’s so much easier to have everything in one place.
In this tutorial how to connect Windows Server Essentials to Office 365 is shown. It contains wizards to handle complex integrations, such as synchronizing directories and setting up single sign-on. Remember: The Office 365 integration works only with a single domain controller, and the wizard must run on that domain controller.
Open Server manager and select add roles and features
Select the appropriate server
Select Windows Server Essential Experience server role
Click Next to continue
Confirm and install
After the installation configure Windows Server Essential Experience
Integrate with Microsoft office 365
Provide username and password
Restart the server
It is done..