Standalone fax users have many choices today, both in add-ins for Microsoft Outlook/Exchange and in alternative Internet faxing services.
Why wrestle with a fax modem and tie up your telephone line when you can receive faxes for free via e-mail and send faxes via the Internet at little or no cost? Rates tend to be low (sometimes even free), because the fax service provider can scatter modems in many locations and often send faxes with local calls. Look for a provider that can handle Word files, graphics files and other documents, not just plain text. Office 2003, Office 2007, and 2010 integrate Internet faxing into Outlook, Word, and other programs. See FAQ on faxing via the Internet for a list of services and more references on this topic.
Using Internet Fax services, you send faxes using your Internet connection, either by logging into the fax service's website or sending the fax as an email message. Many Internet fax services support sending faxing from Outlook using a specially formatted email address, usually in the format of [fax_number]@fax_service.com.
See Personal Fax Services for applications and add-ins that allow you to send faxes using your telephone line.