by 
The Curious Bag
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Both Sendmail and Exchange servers offer an easy way to transport email over a local network or the Internet. Sendmail offers fewer features than Exchange, and while Sendmail is intended for users of all types, Exchange is focused on businesses.
Sendmail Server
Sendmail is a Unix-based email server that has been ported to other platforms. Sendmail uses simple mail transfer protocol (SMTP) to send emails. Sendmail is limited in its scope, offering only an email server.
Exchange Server
Microsoft Exchange mail server provides an email-based environment that allows sharing of calendars, tasks and notes between users. Exchange can also use direct push to send new messages and calendar events to smart phones, Outlook for Windows and Entourage for Macintosh.
Similarities
Both Sendmail and Exchange provide server-based email solutions. Both allow the use of standardized protocols to deliver messages to desktop and mobile clients.
Differences
Sendmail is focused on the small business and home market. The software is free and is a good introduction to running an email server. Exchange server is costly but offers complete integration of emails and calendars among a large work group.
Expense
Sendmail may be downloaded for free and installed on any computer. Microsoft Exchange server licenses must be purchased from Microsoft, with the cost based on the size of a business.
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