Use of own domain name with Office 365 Home/Premium

You dont need to own a business to buy O365 for businesses. And it includes everything you are asking for - it costs more than the Home version but you mentioned you are willing to pay more. 

In the past they offered just what you are asking for in the US, UK & Canada but they discontinued it because there was not enough demand... but for those who grabbed it at that time, they continue to use it. But it was only domain hosting with Outlook - Office and Onedrive costed an additional 70USD per year.

If I was you, I'd order a business plan.

The alias still rely on you having a separate email account, the outlook.com basically works the same way as windows outlook client works when you add an external pop or imap account. So you can use your private email address with outlook mailbox. If your email provider does not allow outlook.com to use their smtp server, your email will be listed as "sent on behalf of *******@email.com*". Not a good solution.

To use your own domain, you had to be part of the now removed outlook premium program. Mine still works even though the program is dead. This way I've set the correct mx records etc so MS/Outlook.com handles all my mail directly.

I assume this will continue to work at least for as long as I have a O365 sub of some sort, maybe even with only outlook.com account. But no one at MS support (spoke with 4 different people) was able to verify why it still worked, how it worked or for how long.

Hi,

I have been trying to figure out this for the last two days and thought that I could share my findings.

I have successfully added my own "alias" and now I have ******@mydomainname.com as primary alias.

However, I don't understand how am I supposed to receive emails without any modifications to my MX record.

Now I can send emails, but they appear as random number @outlook.com:

My Name <*************@outlook.com>

I still receive email on my POP3 email server (obviously). 

If aliases are only for logging in, then it is completely useless.

This isn't about using O365 for external domains, its about O365 Home NOT offering email domain hosting. There are a lot of us who have personal domains that we use, mine is my lastname.com. I currently pay GoDaddy for hosting. I think it should be an option to pay MS to do that. IMHO, it should be included in my current subscription, but I would pay more for the option to dump GoDaddy (or any other hosting service) to have all of my services consolidated into one provider. They offer this in their business plans and their outlook.com email service is already Exchange-based. Why not offer it to home users?

Well, that's the really strange thing:  Office 365 does offer email hosting - just not with a custom domain.

As you said: MS has all that's required for the job: They have the Exchange infrastructure set up for outlook.com, they even had the complete feature developed and up and running in "Outlook.com premium" in the US until last year.

And still they don't offer it. This clearly is a product management / business decision to have "custom domain" only in the enterprise plans.

YES, of course: I would also pay an extra fee for that. Of course I would.

Right now I pay my web hoster for my email accounts and Microsoft for office.

Of course I'd preffer to only have one contract. 

And it's not only that: I would like to have the added benefits as the O365 corporate users have them such as neat integration of oneDrive for attachments, directly editind documents and so on.

I would probably, depending on the benefits, even pay a premium over the price of "Office + email" alone.

But MS doesn't offer it.

And that is what pisses me off.

This isn't about using O365 for external domains, its about O365 Home NOT offering email domain hosting. There are a lot of us who have personal domains that we use, mine is my lastname.com. I currently pay GoDaddy for hosting. I think it should be an option to pay MS to do that. IMHO, it should be included in my current subscription, but I would pay more for the option to dump GoDaddy (or any other hosting service) to have all of my services consolidated into one provider. They offer this in their business plans and their outlook.com email service is already Exchange-based. Why not offer it to home users?