You can use a few different configurations for faxing from Outlook.

-       You can have a fax modem installed in your computer and use that device to send and receive faxes.

-       You can use a fax service, which is a third-party program you would purchase to integrate with Outlook.

-       Some companies provide fax numbers that you set up like an e-mail account, using the Additional Server Types option in Tools – E-mail Accounts.

-       Some companies just provide a service that receives your fax and then forwards it to you as an e-mail.

 

These days, most people choose either of the latter options: an add-in or an e-mail type fax server.