How to set up External Sharing same as Office 365 in SharePoint On Premise 2016?

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The 'sharing' options have not changed between 2013 and 2016.

You could use standard Active Directory accounts and hand those out to non-employees. This requires a Windows User CAL or External Connector (last I looked, that evens out at ~60 users). On the SharePoint side, no licensing is required.

You could also federate using Azure ACS and develop custom code to handle sharing with accounts such as Microsoft, Facebook, etc. This is a fairly high development investment, though.

MSDN Forum Link Sharepoint Server 2016 - On Premise External Sharing

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