You install Microsoft Exchange Server for "Synchronized Identity" management only.
Ex.: after 3rd party mail server migration (Kerio Mailserver, Lotus Notes, CommunigatePro, etc.) and you have existing Active Directory configured with AAD Connect. Microsoft Exchange Server (EAC or EMS) is the only supported way for "Synchronized Identity" management with AAD Connect.
Notwithstanding this fact, you can create Office 365 mailbox via Exchange Management Shell (New-RemoteMailbox)
Solution
Install the Hybrid license key (free for Office 365 customers) on the Exchange Server (there is no need to configure full Exchange Server Hybrid however)
To obtain a Hybrid Edition product key for your Exchange 2010 SP3 or 2013 or 2016 server, go to the Exchange hybrid product key distribution wizard using Office 365 Global Admin credentials.
Apply obtained key to your Hybrid Exchange Server:
Set-ExchangeServer -Identity HybServer01 -ProductKey XXXXX-XXXXX-XXXXX-XXXXX-XXXXX
Get-Service -Name MSExchangeIS -ComputerName HybServer01 | Restart-Service
Add remote domain:
New-RemoteDomain -Name "Online Domain" -DomainName "tenantname.mail.onmicrosoft.com"
Set-RemoteDomain -Identity "Online Domain" -TargetDeliveryDomain $true
Refresh browser session and "Office 365 mailbox" UI button will appear in EAC UI. Restart Exchange server if button is still missing
References:
- Understanding Office 365 identity and Azure Active Directory
- Why should you have at least one Exchange Server on-premises with AAD Connect/or AAD Sync/or DirSync
- Office 365 and Dirsync: Why should you have at least one Exchange Server on-premises
- Obtain free Exchange Hybrid Edition Product key for Exchange 2010/2013/2016
- Exchange hybrid product key distribution wizard
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