Open Server Manager.
Click manage -> Add roles and features.
Select “Role based or feature based installation”.
Click Next.
Click Next to continue.
Click Next.
In the feature popup “Check SMTP Server” listed in the feature.
Click Next.
After successful installation “Restart the destination Server, if required”.
Click Close.
Click Start -> Open IIS Manage to configure SMTP Virtual Server.
Right on the SMTP Virtual Server -> Click Properties.
Click authentication “Check anonymous”.
Click OK.
Click the connection ”Check All except the list below”.
Do the same for relay.
Click Message and set “Limited message size is 10240”.
Click Delivery.
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.
Click OK.
Click Advanced.
Check that FQDN is valid.
Provide SMTP host of your Email provider.
Click OK.
Open Service.msc.
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.
Click OK.
Now, you create/Manage alerts in a list and libraries.