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The choice of Live@edu was made following an internal technical evaluation and consultation with student representatives.
Apart from removing much of the effort involved in administering and maintaining a student email service, Live@edu increases mailbox capacity to 10G and adds calendaring and contact management.
It also provides students with the option of retaining their email addresses after graduation.
"The Live@edu service met all our internal IT requirements and offers functionality that the University’s system could not compete with. Our students now have the advantage of a greatly increased mailbox capacity as well as the option to have an email account for life," said the University of Sydney's CIO, Bruce Meikle.
"As well as these student benefits, the IT department now has an easy to manage and scalable email service that will help take the University into the future," he added.
Earlier this year, Queensland University of Technology and the Australian Catholic University announced the adoption of Live@edu for student email.