Are you able to send Email to SMS using Microsoft SQL Server?

Yes!

It is important to note that Exchange Server's relaying policy requires the SQL Server to use Windows Authentication rather than Anonymous on the Database Mail SMTP settings. Otherwise, the  Exchange Server treats the email as relaying and will only deliver to internal addresses.

By using a Windows Authentication account to send the email, the Exchange Server will be able to send email externally and this can be received and processed by SMS Central.

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