Microsoft Live Custom Domains are now shutting down. I have been using this service for e-mail hosting for all my Microsoft Azure Websites, but now it is gone and no viable repl
I feel your pain. Had to have some tough talks with many of my customers when the free Google Apps option was discontinued.
I found two routes:
I am stil looking for a free alternative, but have yet to find one that can match the features that were available in the free version of Google Apps.
EDIT: I was thinking about this again last night and came up with another idea. I am not a Linux guy, so I would not be happy to do this for production mail server. For someone who is "bilingual" (i.e. ok with both MS and Linux solutions) or of a more adventurous nature than me, could take route 2 with a linux server and an open source mail server solution. I am sure this will lower the cost even more significantly, since you will not need to pay for the mail server licence and also per-hour instance costs for Linux servers are lower. This might even create a whole new revenue stream.