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What does Server-side Synchronisation do??

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I have spent the day trying to get emails synchronising between my outlook and my CRM Online instance.

I created, approved and enabled a mailbox within my CRM.

Sending emails from inside CRM works ok.

It is using my office 365 account and using Exchange Online for synchronisation.

I added the same office 365 email to my outlook client and installed CRM for outlook.

I have spent a bit of time on the phone to Microsoft support who tell me that, while I have server-side synchronisation selected on my mailbox, emails sent through crm for outlook will not synchronise with CRM.

I am having a lot of trouble understanding why this is the case and looking for some more guidance.  What is the point of server-side synchronisation of emails?  Where can I send an email from (with my office 365 email), and have it appear inside CRM?  Surely if I send an email from outlook, using my office 365 account that I use in CRM, that it would go through exchange online and be processed.  But apparently this is not the case??


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