Running Microsoft CRM 3.0 without Exchange Server

"The Best User Experience and Tested Solution for Microsoft CRM involves using a Microsoft Exchange Server, either standalone or utilizing Small Business Server. That is the environment our development was done in, our testing was done in and our support folks have the most amount of knowledge around.”

Microsoft CRM does NOT REQUIRE Exchange Server to run. However, if you do not have an Exchange server, you will not have some functionality available to you. You will still have a CRM system with functionality that rocks, a killer user interface, awesome reporting and a ton of customization ability.

Read more (Mid Atlantic Microsoft CRM)